Unlimited liability for directors requires prior written notice and proposal statement; failure attracts fines and damages. A limited company may provide in its memorandum that a director's or manager's liability is unlimited. If liability is unlimited, any proposal for appointment must state that the officeholder's liability will be unlimited and, before acceptance or acting, a written notice of unlimited liability must be given by promoters, directors, manager or officers; default in making the statement or giving the notice attracts a fine and liability for any damage caused by the default, without affecting the appointee's liability.
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.
Unlimited liability for directors requires prior written notice and proposal statement; failure attracts fines and damages.
A limited company may provide in its memorandum that a director's or manager's liability is unlimited. If liability is unlimited, any proposal for appointment must state that the officeholder's liability will be unlimited and, before acceptance or acting, a written notice of unlimited liability must be given by promoters, directors, manager or officers; default in making the statement or giving the notice attracts a fine and liability for any damage caused by the default, without affecting the appointee's liability.
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