Liquidation of company and directors assets
Divya
(Querist) 11 April 2016
This query is : Resolved
Respected experts,
There is a main asset "land" which is owned 50% by the managing director and Rest share divided among other directors.
Managing director has a parallel partnership firm which borrowed crores from several business groups. All these groups have civil court decrees against the managing director and his firm
Land is the only asset which can be attached. But this land already has mortgage charge of few banks.
1. Is approaching the concerned high court, to put this land for auction and liquidation right remedy on account of several claims against it
2. All the business groups who have civil court decrees against the managing director and his firm, should these groups put their names on the saat baara of that land or directly high court receiver will proceed for decree execution by auction of land.
3. Do the business groups need to attach the share holding of the managing director by filing garnishee proceedings.
4. There are other directors who are holding some shares of that company and also d land ownership on account of that. Do the business groups seek attachment and auction of even these shares held by other directors.
5. Do the business groups seek attachment of personal properties of these other directors since they are a part of a company where the managing director is having liabilities from the same company and even liabilities from his partnership firm
Please share your expertise and knowledge herein.
Thankyou
P. Venu
(Expert) 12 April 2016
Managing Director - Please elaborate!
Divya
(Querist) 12 April 2016
Respected Sir,
He holds 50% shares in the Company and is also the Managing Director of that Company. Earlier the balance 50% shares were held by his wife, wife transferred her 50% shares to some new directors.
Also as re-stated above the land is owned by the company and the managing director has purchased the land on behalf of the company acting as the authorized signatory.
the said managing director is also a partner in the firm
Divya
(Querist) 12 April 2016
Respected sirs
I and my colleague are decree holders. We have one decree, other business groups too have civil court decrees or arbitration awards.
