Clause 219 - Liability of manager of a company - Direct Taxes Code Bill, 2009

Liability of manager of a company 219. (1) Every person being a manager during the financial year shall be, jointly and severally, liable for the payment of any amount due under this Code in respect of the company for the financial year, if the amount cannot be recovered from the company. (2) The provisions of sub-section (1) shall not apply, if the manager proves that non-recovery cannot be attributed to any neglect, misfeasance or breach of duty on his part in relation to the affairs of the company. (3) The provisions of this section shall prevail over anything contrary contained in the Companies Act, 1956. (4) For the purposes of this section, "manager" shall include a managing director and both shall have the meaning respectively assigned to them in clause (24) and clause (26) of section 2 of the Companies Act, 1956.