Become a Govt. Certified GST Practitioner. Batch begins 18th Nov. Register Now!

Shared liabilities of directors in company closure expenses

13 February 2021

Hi Team,

I am director in a pvt ltd company along with 1 more person and we have shareholding in the ratio of 3:2 . Can you please tell me as per rule, how should the expenses if any in the closure of the company should be shared.

thanks.

Reply
Follow
Share

4 Replies

pritesh (delhi) (720 Points)
Replied 14 February 2021

A director need not to bear any expense . although you are a shareholder too than expenses should be distributed in mutually agreed. there is no law or procedure to share the expense in ratio.

Upgrade to CAclubindia Pro. Subscribe Now!

Hitesh Jain (5 Points)
Replied 18 February 2021

Thanks @ pritesh . Company does not have money to bear expenses. So I think directors will invest money in the company for this purpose.

What if 1 director has shareholding of ~51% and other has shareholding of ~32% , so in this case as one of of the director has more than half shareholding, is he not liable more to bear expenses ?

pritesh (delhi) (720 Points)
Replied 18 February 2021

No there is no concept of bearing expenses in any case . if possible can you give the company name.

Hitesh Jain (5 Points)
Replied 18 February 2021

Thanks a lot Pritesh. Do u mean to say there is no concept of bearing more expenses by director having more share holding? I will let u kno the company name in personal chat.