Director’s Liability

A DIRECTOR OR EMPLOYER CANNOT BE ARRESTED BY INCOME TAX OR EPFO AUTHORITIES ON THE SOLE GROUND THAT HE HAS NOT PAID PROVIDENT FUND OR INCOME TAX ARREARS: THAT’S WHAT THE KERALA HIGH COURT HELD IN “ALI VERSUS RECOVERY OFFICER, EMPLOYEES PROVIDENT FUND ORGANISATION”( PART-II)

Company Disputes, Director's Liability / By uniquelylegal

Therefore a person who is under such threat must marshal his resources skillfully in order escape such illegal arrest. And I must say that engaging an able Advocate is one of the most crucial aspects of such marshalling.

A DIRECTOR OR EMPLOYER CANNOT BE ARRESTED BY INCOME TAX OR EPFO AUTHORITIES ON THE SOLE GROUND THAT HE HAS NOT PAID PROVIDENT FUND OR INCOME TAX ARREARS: THAT’S WHAT THE KERALA HIGH COURT HELD IN “ALI VERSUS RECOVERY OFFICER, EMPLOYEES PROVIDENT FUND ORGANISATION”(PART-I)

Company Disputes, Director's Liability, Uncategorized / By uniquelylegal

Director’s whole company can be taken from his hand and given to a third party (called Receiver). The Director is completely thrown out from his Company’s management and he cannot run the Company anymore, as the Receiver is the new boss

AN OFFICIAL LIQUIDATOR IN LIQUIDATION PROCEEDINGS IS NOT ENTITLED TO ASK A DIRECTOR TO PAY THE DUES OF THE COMPANY FROM HIS PERSONAL INCOME : THAT’S WHAT BOMBAY HIGH COURT HELD IN “SHRI VIMALKUMAR RAVJI SHAH V/S THE EMPLOYEES PROVIDENT FUND ORGANISATION, SOLAPUR & ORS”

Leave a Comment / Company Disputes, Director's Liability / By uniquelylegal

If ESIC wants to effect a recovery from the company it can sell the assets of the company but the personal assets of the Directors are out of reach for it