A director in any company in India can be either executive director, non executive director or an independent director.
An independent director is responsible for ensuring that the company is compliant and its activities do not violate the law. If the Indepenedent director has voiced his/her concerns during the bord meeting when the concerned matters were discussed, these can be shown as evidence and that director may not have to bear the adverse consequences.
If the person is an executive director, that person works along with the promotors and the management and gets a salary and he/she is responsible for the issues and will face consequences.
A non-executive director is also considered to be along with the promoters unless it can be shown that he/she has actively disagreed with the non compliant activities.
If the company has not violated any laws but has become insolvent due to business considerations, and there is evidence of the same, then the represetatives can state it in nclt and the concerned directors' assets may not be attached.
A silent spectator director will face the consequences.
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