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Who is responsible?

03 May 2018

If Chairmen executed a promissory note on behalf of co and on later date co denies the execution by statement that it was not under the authority of Chairman

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3 Replies

Jeeva Thangavelu (Student CA Final ) (609 Points)
Replied 03 May 2018

A Company cannot be held responsible for acts performed by ofiicers/employees of the company that are not bound by the powers of such officers (or) employees.

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Jatin Bajaj (CS) (2930 Points)
Replied 04 May 2018

Company is not all responsible for the act and compliances done by the officres and Directors of the Company. Any officer or Director of the Company shall be responsible who at the time of commiting the act was at default.

Aditya Shah (student ) (47 Points)
Replied 13 May 2018

In such a case the onus is on the Chairman to prove that the company has given him the authority... generally the chairman has a general authority to do all such things...