Liabilitiies of a resigned director
Parul Bhayani
(Querist) 14 November 2014
This query is : Resolved
Sir ,
My relative was a director in a firm from 2002 to Oct 2010. A loan was taken from a Nationalised bank in 2009 , during which as a director , have given personal gaurantee for the loan . The loan was used purchase machinery which is still with the company . After resignation , a new director had been appointed and registered with ROC , form 32, also the bank was intimated alongwith a copy of the form 32. Now if the company defaults in its repayments , is he still liable to the bank as he had given a personal gaurantee. Can the bank issue any notice to him ?
Guest
(Expert) 14 November 2014
Commercial query. If your relative is really facing any problem on the issue, he should come forward personally with description of the real problem, instead through you as a via media.
Rajendra K Goyal
(Expert) 14 November 2014
He is liable till his personal guarantee is with the Bank.
He may give notice to the Bank and company to replace him by another Guarantor.
Advocate. Arunagiri
(Expert) 14 November 2014
If he had given a personal guarantee, he is liable for the loan, even after the resignation from the board.
Parul Bhayani
(Querist) 15 November 2014
Thank you for the replies .
Mr Goyal - Will the bank accept the replacement directors' gaurantee . As the loan was used to purchase machinery , which is still lying in the company
T. Kalaiselvan, Advocate
(Expert) 17 November 2014
If the loan was availed on personal guarantee, the director has to approach with the replacement of guarantor to get himself relieved or discharged from the liability.
