Partnership to company
amit kumar
(Querist) 16 February 2016
This query is : Resolved
Dear experts,
I am attached to a nationalized bank.One of our Borrower ,a partnership firm converted themselves to a private limited Company without the consent /NOC from bank. As the account was classified as NPA Bank is preparing for filing OA in DRT. After receipt of Legal notice from the bank the erstwhile partners and present directors resigned from the company.Bank is preparing to make both the partners and the company defendant.
Now the issue is as the partners have resigned as directors of the company will it create any complication .
Deepak Nair
(Expert) 16 February 2016
It will not create any complication.
They were the concerned authorities and signatories at the time of availing credit and also while defaulting in repayment. therefore they are legally liable.
Rajendra K Goyal
(Expert) 16 February 2016
Bank can afford lawyer. They have also their legal department.
Guest
(Expert) 16 February 2016
Mr. Amit,
If this is a real problem and not an academic query, would you please like to clarify the following points:
First of all, as a Law Officer, why and under the provisions of which ection of which Act do you believe that for conversion of a partnership firm would have needed consent or the noc of the bank?
Secondly, you have not stated, whether the Memorandum and Articles of Association of the company contains any specific indication that the company was converted from the specific firm or was created as an independent entity?
Thirdly, and the most important, when the banks are having full fledged legal departments and company law expert, the company secretary, or even have the powers to hire services of some speiclist as a consultant, what is the logic of availing free and charitable service by your bank for a commercial problem?
