Managerial liability: personal joint and several responsibility for unpaid company tax when corporate recovery fails. Every person who is a manager of a company during a financial year is jointly and severally liable for any amount due under the Direct Taxes Code for that year if it cannot be recovered from the company, subject to a defence that non-recovery was not due to neglect, misfeasance or breach of duty by the manager; the provision overrides inconsistent Companies Act provisions and defines 'manager' to include managing director.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Managerial liability: personal joint and several responsibility for unpaid company tax when corporate recovery fails.
Every person who is a manager of a company during a financial year is jointly and severally liable for any amount due under the Direct Taxes Code for that year if it cannot be recovered from the company, subject to a defence that non-recovery was not due to neglect, misfeasance or breach of duty by the manager; the provision overrides inconsistent Companies Act provisions and defines "manager" to include managing director.
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