Received shares in pvt ltd company, didn't know it had a loan
Mayank Arora
(Querist) 10 August 2014
This query is : Resolved
Hello Experts,
A person owed me some money and wasn't able to pay me back. Instead he said he'll give me shares in his pvt ltd company. He transferred me the shares using form 5 B and even made me a director.
I do not know much about accounting and did not check the credentials of the company. Later I found out that the company is in heavy losses and has a private loan from a person and now he's demanding his money from me.
What can I do now?
1. Am I liable to pay this money back since I'm a director (only on papers, I have never participated in anything)?
2. Can I take any action against the person who gave me the shares, since he didn't tell me about the loan?
Devajyoti Barman
(Expert) 10 August 2014
You are liable for all the acts of the Company not in individual capacity but as a director.
malipeddi jaggarao
(Expert) 11 August 2014
First of all you have committed a mistake of joining as Director in the Company which is suffering financially.
You will not be personally liable to anybody. Do not take calls for recovery by the borrowers to the company. It is the job of Managing Director.
You submit your resignation immediately.
Rajendra K Goyal
(Expert) 11 August 2014
As a director you are liable as per your role in affairs of the company. Agree with the advise of experts.
P. Venu
(Expert) 15 August 2014
Were you, as a director, involved in the day today management?
T. Kalaiselvan, Advocate
(Expert) 16 August 2014
I agree with the views of expert Mr. Malipeddi Jaggarao, nothing more to add.
Advocate. Arunagiri
(Expert) 16 August 2014
Are you the director as per the ROC Records?
you can check it online.
Corporate shield is there, you need not worry about the borrowings of the company.
You are free untill and unless you are also involved in those transactions.
