08 June 2011
In XYZ, we have 4 nos of executive director appointed on monthly remuneration basis who works full-time to carry out the company’s daily operations. Mr. A is not holding any directorship in the company,but having ownership of stake of equity.He is not involved in any day to day operations except signing the salaries payments of staff as a signatory authority.
Would Mr.A is responsible/liable for any act or omission or proven negligent ?
09 June 2011
As far as my knowledge is concerned companies act does not emphasis on terms given to personnel, rather functions they perform as found in definitions of MD, which states who have substantial power of management whatever name they may be called for...so he will be responsible under OFFICER IN DEFAULT. in case of any omissions or negligent... Opiions are invited SUmat Singhal,Indore
CAclubindia
