If there is any fault by the company who will be liable

918 votes

Thank you for your query.

Company is a separate legal entity separate from its shareholders. This is the reason why independent directors are appointed to look after the day to day working of the company. However, in certain instances the jurisdictional Court can life the corporate veil and prosecute the shareholders where the substance is different from form. Generally Board of Directors and liable for day to day activities and if there is any wrong doing they would be accordingly liable.

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Best Regards,
Saurabh

Advocate Saurabh Kumar LawRato

955 votes

if a member / director commits a default on behalf of the Company, it is deemed as the fault of the Company. Generally, the director who is responsible for running the company affairs, is deemed as responsible for the default. The other director can seek immunity from any third party action by proving his not being involved in the impugned act.

Advocate Avneesh Garg LawRato

986 votes

If two members are opening a Partnership concern and if there is a dispute, the other member can opt out of the company by selling his share of investment. He can either sell his shares to the other partner or if the other partner does not want to buy his shares , the company will be dissolved and amount distributed. If there is a case of financial irregularity by one of the partners, the other can sue him as well.

Advocate Pradeep Mathur LawRato