CA in practice (CA,CS,CWA ) (110 Points)
18 March 2010when we say that a Director has personal liability for misstatement in prospectus and when we say that directors/members have unlimited liability in an un limited liability company . What is the difference b/w the two types of liabilities
Payal Gupta
(article assistant)
(176 Points)
Replied 10 April 2010
in case of misstatement of prospectus the director or the person authorised to issue the prospectus shall be personally liable i.e, not used co's any asset onlt their personal
& in case of unlimited liability co. every member is liable to contribute to the assets of the co. until all the debts of the co. are paid in full & in other way the memorandum doesn't anyway limit the liability of members not personally liable
CAclubindia
