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Anthony Raj (Manager)     18 November 2013

Liabilities of director of pvt ltd co

One of my friend runs a small outsourcing firm from couple of years.  Lately he is offering me the director role and wanted to transfer 60-70% of the share on my name.  Also, as director he wanted me to create the DIN no. and asking me to sign the Bank documents to authorize him for all kinds of bank transactions. 

Without knowing the company much, I would like to know if it is safe to get the shares transferred under my name and also authroize him for the Bank transactions.  Kindly advise.


 2 Replies

BAALASUBRAMANNYAMM (Advocate)     18 November 2013

If you want to become a share holder of the company, it is your duty to know each and every thing about the company and also to know the present and past situations. You should also satisfy your self ,  that your becoming partner, must have good faith.

Sunil S Nair (lawyer)     23 May 2014

Ask your friend for all documents that is related to company afffairs ask him about any liability incurred debts if any and case registered against the company in court of law you may not ask him as he his your friend but do try to collect all information mentioned above regarding companies work if all seems fine then you are fit to move forward remember with incomplete information may put you in legal trouble so better prevent it ,,,,,,,,,,,,,,,,,,,Half truth is dangerous than a lie

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