11 July 2011
Hi I have read through the procedure of taking over sole propritory by forming a new private limited company. I wanted to know what if any individual starts a litigation on the sole prop business after it has been taken over by pvt ltd comapany? Does the liability limits to only the earnings of the pvt limited company? How does this work, can anyone please help...
13 July 2011
The individual liability shall not pass on to the company after formation. It will continue to be individual liability but in the MA you have mention that all other liabilities which are not taken over shall not be the liability of the company.
CAclubindia
