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gn rao   04 December 2024

Appointed directors without any financial powers & have a din number

Is a professional director with a DIN no of a company declared NPA by the Bank and subsequently a NCLT resolution has been passed on. The directors did not have any financial powers nor they provided any corporate guarantee to the bankers. In such a case, does the Corporate Creditor such as Bank have authority to recover the dues by attaching both liquid & immovable personal assets of the Directors and their spouses????



 2 Replies

T. Kalaiselvan, Advocate (Advocate)     04 December 2024

the National Company Law Tribunal (NCLT) can attach a director's assets: 

Powers of the NCLT

The NCLT is a quasi-judicial authority that deals with corporate disputes under the Companies Act. It has the power to attach assets in cases where it's necessary to protect the assets of the corporate debtor. 

Powers of the Liquidator

The Liquidator has the power to take measures to protect the assets of the corporate debtor. They are also responsible for recovering all assets and dues to the corporate debtor. 

 

S Jadhav 98336 98330 (Jadhav & Associates)     04 May 2025

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.

 

If 


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