Section 88 - Liability in case of company in liquidation.

Director liability for unrecovered tax: directors may be jointly and severally liable unless gross neglect is disproved.

The liquidator must notify the Commissioner within thirty days of appointment; the Commissioner shall, after inquiry, notify within three months the amount deemed sufficient to cover tax, interest or penalty payable by the company. For private companies wound up where such liabilities cannot be recovered from the company, every person who was a director during the period of liability is jointly and severally liable unless he proves that non recovery is not attributable to gross neglect, misfeasance or breach of duty.