Liability of Director

Himanshu Sharma (Querist) 11 March 2008 This query is : Resolved
Dear Friends

I am working with an company which has been in operation for last 10 years, however, they did not bother to get ESI code. Now they wish to get the ESI code, however, the directors of the company do not want any kind of liability, either due to default or any in future.

I would like to know that if the company nominates, a person as responsible for all activities related to ESI,will that dissolve the liability of directors in case of any amount recoverable.

In case, yes what kind of letter or agreement has to be issued by Directors.

Please reply to this query on an ASAP basis.

Thanks & Regards

Himanshu Sharma

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Manish Singh (Expert) 12 March 2008
Dear Mr. Sharma
the directors are not liable for esic under the factories act since even the manger is treated as the the employee under the act.