An executive director, being a member of the board and ...

Exec directors can't evade liability by claiming ignorance of daily ops or low pay. Courts uphold trial against board member.

Case Laws SEBI

November 14, 2024

An executive director, being a member of the board and responsible for overall management, cannot evade liability merely by claiming lack of involvement in day-to-day affairs or receiving nominal salary. The court found a prima facie case against the petitioner, an executive director during the alleged offense period. Interfering at this stage would be an abuse of process. The trial court rightly applied the law in rejecting the discharge plea. With the trial underway and evidence being recorded, the HC declined to interfere in the ongoing proceedings against the executive director.

View Source

← Previous Next →

An executive director, being a member of the board and ...

Exec directors can't evade liability by claiming ignorance of daily ops or low pay. Courts uphold trial against board member.

Case Laws SEBI

November 14, 2024

You may also like:

Disallowance of payment of professional fee to the directors - allegation of paying excessive remuneration to the directors - services provided by the directors towards...

Eligibility to make adjustment of excess service tax paid against future service tax liability - Claim of Excess service tax paid due to issuance of revised invoice -...

Provision for remuneration of whole time directors – Enhanced directors remuneration – claim of assessee was allowable - AT

The case pertains to the levy of service tax under the reverse charge mechanism (RCM) on rental payments made by a company to its directors for renting immovable...

Refusal to honour the liability of paying the service tax (on the part of LIC) - Renting of immovable property to LIC - It is to be borne in mind that the LIC being an...

Levy of GST - salary paid to Director of the company who is paid salary as per contract - Reverse charge mechanism (RCM) - the services rendered by the Director to the...

A director of a company cannot evade vicarious liability for the offence of dishonor of cheque u/s 138 of the Negotiable Instruments Act by merely claiming to be a...

Vicarious liability of Additional Director - Non-executive Independent Directors or not - Officer in default - non repayment of deposits by the Company to the depositors...

Disallowing excess directors remuneration - sum paid towards directors remuneration and that is to the extent of 80% of the net profit - the AO has not carried out any...

The director's remuneration in the form of commission based on a percentage of the company's total profit is not subject to service tax under the reverse charge...

Liability of Independent Director who was retired before the date of offence - the petitioner as seen from the documents was an Additional Director on the date the board...

Appointment of Additional Director or independent Director - incorrect declaration in the aforesaid Form DIR-12 or not - The subsequent documents along with the...

Dishonour of Cheque - Liability of a Director - principles of vicarious liability - petitioner had already resigned on 15.03.2014 as Director of the Company and was...

Dishonour of Cheque - Vicarious liability - petitioner is an Independent Non-Executive Director - - the petitioner was appointed as Additional Director and resigned as...

Dishonour of Cheque - existence of legally enforceable debt or liability - vicarious liability of nominee and non-executive directors - The contention does not cut much...

Quick Updates: