Urgent query!

450 views 2 replies

Ritzz

CA Final - Article

365 Points Joined January 2010

Please provide necessary guidance for the following query :

Are the Illegal acts done by an Alternate Director (which ultimately harm the company and its interests) would be binding on the Original Director or the Alternate Director (who has been appointed in place of the Original Director?

Regards

Replies (2)

AMIT MISHRA

Legal Professional

393 Points Joined July 2011

Hi Rohan,

No, the original director cannot be directly held liable for a director appointed as alternate director in his place. The alternate director in no way represent the original director. Though indirectly he may found responsible for "illegal acts" done by the Company to its outsiders.

Thanks & Regards

Amit Mishra

www.mycorporate.in

Sathyam

Student

38 Points Joined December 2011

alt.dir is not a proxy, not an agent of original dir. the provisions of the Act wil aply same, as they aply to any other dir. alt.dir is also a dir in his own right. to say in a humourous way, alt.dir need not dance to the tunes of orig.dir. so, it was clear tha the orig.dir cannot be made liable for tha acts done by alt.dir, in his independent capacity. --S @ T#¥ @ M--