Liability of directors for act of subsidiary

This query is : Resolved

CA ROSHAN TIWARI (Querist)
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18 November 2011 ARE THE DIRECTORS OF HOLDING COMPANY OR THE HOLDING COMPANY IS LIABLE FOR ACT OF ITS SUBSIDIARY COMPANY WHERE HOLDING IS 51 %.

CS Bijoy

CS Bijoy (Expert)
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22 November 2011 Directors are liable for all the act of the Company and the Share Holders are liable depend on the type of the liability.

RG - A Helping Hand

RG - A Helping Hand (Expert)
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22 November 2011 Nops

Primarily directors of a holding company are not liable for the activities of a subsi company unless they are also on the board of subsi company.

However if it can be proved that the dir of holding company are the controlling powers behind the subsi company then they can be held responsible.

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