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Suit filed against ex company for breach during period of employment


16-Mar-2023 (In Labour & Service Law)
I was the founder of an IT company and served as one of the directors till January 2017. One of our previous clients, who worked with us in 2016 (while I was a director there), sued us for the breach of contract on 16th March 2017. I am no longer officially a director at that firm so I just wanted to confirm if I am liable to be a part of the legal proceedings as well or not. I would really appreciate if you would let me know. 
Answers (1)

Answer #1
520 votes
If you were in the capacity of a director of the company at the time of the breach of the contract then you will be held liable in the equal capacity however, if you were not in the aforementioned capacity at the time of the breach of contract then you are not liable for anything done in the company or by the company as you are no longer associated with it in any manner.

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