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Is Directors liable to pay the debts of a closed Company
30-Oct-2023 (In Recovery Law)
Is any one of the Directors liable to pay the debts of a closed Company with no assets ? Can the realization of the debts be done from personal assets of any one of the Directors of a closed Company with no assets.
No Directors are not personally liable to pay debt, liablity of Directors is limited in a company but made personally liable for such of its debts as the court sees fit, if there has been ‘wrongful trading’. Winding up is the course of which company's assets are collected and realised; and applied in payment of its debts; and when these are satisfied, the remaining amount is applied for returning to its members the sums which they have contributed to the company in accordance with Article of Association of the Company.
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Adv. Siddhant Sharma
Delhi | 200+ Answers
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