Can legal action be taken against Director of Private Limited Company?

2 Answers Given By Lawyers

Puneet Agarwal Answer

What action may be taken against directors of a private Limited Company often depends upon the nature of dispute you have against them. Although the directors are prevented from action against them in their private capacity, however, there remain circumstances where they may be sued in their own independent capacities. Consultation Advised for a detailed and appropriate suggestion.

Omkar Answer

Director’s Civil liability to the Company may arise in either of the circumstances: • the directors are guilty of negligence, • the directors committed breach of trust, • there has been misfeasance and • the director has acted ultra vires and the funds of the company have been applied for such an act. A director is required to act honestly and diligently by applying his mind and dis....