43 (b) The members of a private limited company consist of 'A' and 'B' who are also its directors. On 4 August, 2019 'A' left India for a foreign business tour and on 28th August, 2019 he died abroei On 1st September, 2019 'B' purchased on credit of Rs. 10,000 worth of goods from 'C' on beha of the company. 'C' now proposes to make 'B' personally liable for the payment of the debt. Is liable?
Answers
Answered by
8
Answer:
Not personally liable
Explanation:
becoz it is a private limited company as its name suggest it has limited liability towards the creditors so B will liable extent to his shares.
Answered by
10
Answer:
The Director is Not personally liable for the DEBT.
Explanation:
Under the companies act 2013, a private limited company director cannot be held personally liable until and unless he is involved in some fraudulent activity, or he/she had expressed personal guarantee.
- A Director is not personally liable for any of the company's debt.
- A private limited company usually offers some protection against liability , but yet there is a possibility of the director being personally sued
- In the death of Director A, the other director B has to take care of the company's debts
- since the director has done business with C, the company is completely liable to repayment to C
- in case the company is not financially equipped enough then the director of the company is held liable (this is the only way the Director is held liable for debt unless otherwise)
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