Liability of director
Jackie Agarwal
(Querist) 04 February 2014
This query is : Resolved
Hello
As mentioned in my previous posts I am a director in a company which has gone bankrupt.
However I had not pledged any of my property or assets for securing a loan.
Secondly the reason for the company to go bankrupt is due to money swindling and wrong judgments of the other director.
How can i explain to the bank that I had no role in any wrong doing and
Can the bank attach property which has not been created by company assets and has never been pledged.
Plz resolve
Devajyoti Barman
(Expert) 04 February 2014
You have already replied.
For addition of new query, use the same thread than posting a new one.
Your personal property would not be touched. Rest assured.
Nadeem Qureshi
(Expert) 04 February 2014
contact a lawyer personally you can easily bear the consultation fee
V R SHROFF
(Expert) 04 February 2014
you can easily bear the consultation fee
ajay sethi
(Expert) 04 February 2014
you can afford legal fees
Rajendra K Goyal
(Expert) 04 February 2014
Personal property of director can not be attached for the loan liability of Company, if such property was not mortgaged.
Advocate. Arunagiri
(Expert) 04 February 2014
If any malpractise is committed by the directors, and the company is facing the financial crunch due that malpractise, all the directors are held liable.
the corporate shield will not help them. Because the directors are having joint liablity. In case of malpractise, the other director should have initiated prosecution on the accused, being a silent spectator, he will also be held liable.
so, the creditors or the Govt agencies are having the right to attach the directors personal property, even though they were not mortgaged. But, the creditor should establish that the property was bought by swindling the company's money.
R.K Nanda
(Expert) 04 February 2014
consult local lawyer.
Raj Kumar Makkad
(Expert) 04 February 2014
We have to advise only on the basis of given facts by querist rather of presumptive facts based upon ifs and buts.
In the given situation, the personal properties of the directors being not mortgaged cannot be attached.
