672+ Lawyers are online 
Whether other directors are responsible for the act of one director
19-Sep-2023 (In Corporate Law)
1.One director entered into an agreement with an individual and taken Money for investment. 2.There is no resolution passed before or after this agreement. 3.As per the agreement one director has taken Rs.35 Lakh from an individual (Rs.30 Lakh in company A/c and Rs. 5 Lakh cash) 4.Is other director (there are only two directors in company, in this case I am the other director)legaly responsible for this transaction.
As mentioned, the director of a company entered into an agreement with an individual. I advice you to enquire whether the agreement was entered by the director on behalf of the company or in personal capacity. If in case it has been entered on behalf of the company than the company may take action against the director as no resolution was passed by the board to authorise the director and intimate the same to an individual who entered into an agreement. YES, all directors of the company will be liable and bound by the terms and conditions of the agreement agreed by any director on behalf of the company.
Helpful?
23+
23+
Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
Connect with top Corporate lawyers for your specific legal issue
No Comments! Be the first one to comment.
"lawrato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."
