Criminal proceedings against directors

Can a company director be held personally liable?
The legal structure of the company limits directors' personal liability for company debts.
However, suppose the company is in financial difficulty or has become insolvent.
In that case, the directors may be held personally liable if they take any action or omit taking an action that worsens their creditors' position..
Can a director be prosecuted?
Companies House is empowered to investigate and prosecute individual company directors who fail to fulfil their obligations under the Companies Act 2006..
Can a director be prosecuted?
Companies House is empowered to investigate and prosecute individual company directors who fail to fulfil their obligations under the Companies Act 2006._{May 31, 2023}.
What are the consequences of director misconduct?
Criminal sanctions that could include imprisonment for anti-competitive conduct, acting in bad faith or dishonestly; Civil sanctions, such as fines; Disqualification from your position as director; and/or; Commercial consequences that include placing at risk your company's reputation and assets..
What are the liabilities of directors under company law?
One of the duties of the director is to not achieve or attempt to achieve any undue gain or advantage either to himself or to his relatives, and if such director is found guilty of making any undue gain, he shall be liable to pay an amount equal to that gain to the company..
What happens if directors breach their duties?
This means that a breach of directors' duties can expose a director to personal liability and the possibility of losing personal assets, to include their home, as well as a risk of bankruptcy..
The possible grounds for disqualification are extensive, including persistent breach of company law (eg, to make requisite filings), fraudulent trading or, where the company has become insolvent, that the director is unfit to be concerned in the management of a company.
Third-party liability of directors Includes
It relates to the directors' duty to act in the best interests of the company and its various stakeholders, which includes not only shareholders but also employees, customers, suppliers, creditors, and the wider community.
This means that a breach of directors' duties can expose a director to personal liability and the possibility of losing personal assets, to include their home, as well as a risk of bankruptcy.

Examples of Criminal Offences Involving Company DirectorsFraud by false representationFraud by failing to disclose information where there is a legal duty

Our solicitors are experts in confiscation and restraint proceedings and have a track record of challenging court orders. Examples of Criminal Offences

Can a criminal case be started against a company's directors?

The Supreme Court (“Supreme Court”) in the recent judgment of Ravindranatha Bajpe v.
Mangalore Special Economic Zone Ltd & Ors., 1 has held that the criminal proceedings cannot be kickstarted against the directors and other management personnel of a company in absence of specific allegations and their role in the crime.

Can a director be held vicariously liable?

Supreme Court of India Clarifies Directors or managers cannot be held vicariously liable by virtue of just being a director or manager of a company.
Specific allegations and involvement in crime must be shown to initiate criminal proceedings against directors.
Issue of summons in criminal proceedings is a serious matter.

Can a director be made an accused?

State of NCT of Delhi, reaffirmed its views set forth in the Sunil Mittal case, and held that an individual either as a director or a managing director or chairman of the company can be made an accused, along with the company, only if there is sufficient material to prove his active role, coupled with criminal intent.

Can a director of a company be prosecuted under Indian law?

If the statute does not expressly provide for vicarious liability, then individuals can be prosecuted only if there is direct evidence of their active role along with criminal intent.
A brief snapshot of how liability is fastened on the directors of company under Indian law is provided below:.

Criminal proceedings against directors

Can a company director be held personally liable?

Can a director be prosecuted?

Can a director be prosecuted?

What are the consequences of director misconduct?

What are the liabilities of directors under company law?

What happens if directors breach their duties?

Can a criminal case be started against a company's directors?

Can a director be held vicariously liable?

Can a director be made an accused?

Can a director of a company be prosecuted under Indian law?