Can directors be personally liable in a nidhi ltd company.
2 years ago
Can directors be personally liable in a nidhi ltd company. They collected FD deposit from public and malpractice it.
A.A directors liability is limited to the share that he has subscribed to the company whether it is nidhi limited company or private limited company. But if a company engages into a criminal or fraudulent activity, like satyam computers, then the liability of the directors are unlimited that means the directors will be taken to custody and the case will be opened against them too.
If the Directors knew about the malpractices or authorized the malpractices then they will go behind the bars.
If the Directors knew about the malpractices or authorized the malpractices then they will go behind the bars.
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A.Dear Sir/Madam,
A Nidhi company is a legal entity and a juristic person established under the Act. The Company has wide legal capacity and the members (Directors) of a Nidhi company have no liability to the creditors of a company.
If you find this useful then please rate me
A Nidhi company is a legal entity and a juristic person established under the Act. The Company has wide legal capacity and the members (Directors) of a Nidhi company have no liability to the creditors of a company.
If you find this useful then please rate me
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Ayantika Mondal @ Prime Legal
Responded 2 years ago
A.Dear Sir/ Madam,
A Nidhi company is a legal entity and a juristic person established under the Act. The members (Directors) of a Nidhi company have no liability to the creditors of a Nidhi company.
If you find this useful please rate it
A Nidhi company is a legal entity and a juristic person established under the Act. The members (Directors) of a Nidhi company have no liability to the creditors of a Nidhi company.
If you find this useful please rate it
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A.Dear Sir,
The only managing Director and other Directors who are actively looking after affairs of the Company are liable to answer such criminal or civil charges. The aggrieved may approach High Court.
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The only managing Director and other Directors who are actively looking after affairs of the Company are liable to answer such criminal or civil charges. The aggrieved may approach High Court.
Rate me Five Star*
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