Companies Act, 2017

PART-VII

DISQUALIFICATION OF DIRECTORS BY THE COMMISSION

From: 2023-11-01 - To: 0000-00-00 173. Personal liability for company’s debts where person acts while disqualified- (1) A person shall be personally responsible for all the relevant debts of a company if at any time- (a) in contravention of a disqualification order under section 172, he is involved in the management of the company, or (b) as a person who is involved in the management of the company, he acts on instructions given without the leave of the Commission by a person whom he knows at that time to be the subject of a disqualification order: Provided that where the decision is taken in the board, the disqualified director shall be personally responsible to the extent of proportionate amount of liability so incurred. (2) Where a person is personally responsible under this section for the relevant debts of a company, he is jointly and severally liable in respect of those debts with the company and any other person who, whether under this section or otherwise, is so liable. (3) For…