Legal Question in Criminal Law in Pakistan
section 406
how much a director of a limited
concern liable to creditors in case of
bankcrupcy of the company. Is
section 406 of PPC applicable
Asked on 2/16/09, 4:27 pm
1 Answer from Attorneys
Re: section 406
a director is only liable to the extent & limit of his share of capital (Paid or Unpaid) towards the company and no more. a company can sue or be sued.with out going through the facts of the case it is hard to say. If the director had played some mischief or had breached the trust or the fiduciary relation , then case is clear otherwise immediate legal action is required to clear the position.
Answered on 2/17/09, 6:17 am
Related Questions & Answers
-
Question about forensic science laboratory What is the status of hand writting... Asked 2/15/09, 2:53 pm in Pakistan Criminal Law
-
Defamation Law defences I have been booked for alleged defamation regarding my reply... Asked 2/06/09, 12:53 am in Pakistan Criminal Law
-
Cheque whether there is any difference between dishonor of cheque and bounced cheque... Asked 1/28/09, 7:38 am in Pakistan Criminal Law
-
Criminal law Sir kindly give me the answers of the following questions relating to... Asked 12/14/08, 8:42 am in Pakistan Criminal Law