One of my female relative was working with a private ltd company as a employee. It had 3 directors - owner & his wife & one more person. The third person resigned & they were required to replace him. Since my relative was working in company for long time she was made director. She did not invest her own money. She was alloted 1000 shares.
Company used to issue preference shares to investors. In 2011 MD issued cheques signed by him to investors towards redemption of their pref shares. The cheques bounced & investors filed cases against all directors. My relative had no information about it & had not signed cheques ( but had signed share certificates). As such she had no decision making power in the office matters & was made director just to fill in the gap. She & her family members had also invested money in pref shares & they too did not get their money or interest back. She also did not get salary forpast 6 months. Its major set back to their family as they have lost money & also facing cases in the court. I understand the company is also under involutary liquidation on account of cases filed by lenders to company.
I understand that as NA act if it proved that she was not in control of day to day metters of the company she may be realeased from these cases. Can somebody advise what points can be put in her defence? Does liquidation of company has any impact on cases?
Investors are threatning to file FIR under 420 . Can investor file 420 cases when 138 cases are going on? Is there any time period before which they need to file such cases? By stating facts mentioned in first para can application made to court advising police not to file 420 cases against this female relative?
Regards,
Shrinkar
