can a director and md have protection for default of company

Everything is on the paper. How you can you escape?

Yes but the fact is that we were only on paper...but in truth the company was totally run...and all decisions good or bad were taken by the other director ...and if we can take this in writing from that director and also prove in some way that we were only puppets ...

If you take an Affidavit from your relative who is responsiable for the loss of business then there is hope to you to get relief.

i think at the end, theory of contribution in case of fradulent and altra vires activities will remain unsolved..

calculate all the existing and probable liabilities immidiately, then we can have sufficient material to decide where we can wind up OR sell out the company? what will be tax treatment then ? is this manufacturing concern? then we can decide as to taking benefits under sick industrial unit...  what is the amount of accumulated loss or reserves??

dear sir,

there are many options but we can think over it once we know the facts..

regards,

Swaroop Godbole

lex rem Ass.

advocate

Pune

Maharashtra

As you have resigned from the company since last 8 months and company is exclusively been delat with by the relative of your wife so yur status is just of a shareholder of 10% as you told so you are not liable for any wrong decisions or losses of the company except your  own share.

A director will be liable for the period when he was holding the directorship..no matter whether he was involved in the decision making or not.... When the meetings were held, where the decisons were taken in the company, the appropriate quorum wud have been required...hence the presence would have been shown.. plus the balance sheet would have been signed by the other director also (i.e. you/ ur wife..)... to conculde, a director cant escape the liability for the period when he was holding the directorship..