Director liability for unpaid GST: directors jointly and severally liable unless they disprove gross neglect or misfeasance. Directors of a private company are jointly and severally liable for tax, interest or penalty that cannot be recovered from the company; each director must prove the non-recovery cannot be attributed to gross neglect, misfeasance or breach of duty. If the private company is converted into a public company and recovery of amounts relating to the private period remains incomplete before conversion, the statutory joint liability does not apply to those directors, except that personal penalties on a director remain unaffected.
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.
Director liability for unpaid GST: directors jointly and severally liable unless they disprove gross neglect or misfeasance.
Directors of a private company are jointly and severally liable for tax, interest or penalty that cannot be recovered from the company; each director must prove the non-recovery cannot be attributed to gross neglect, misfeasance or breach of duty. If the private company is converted into a public company and recovery of amounts relating to the private period remains incomplete before conversion, the statutory joint liability does not apply to those directors, except that personal penalties on a director remain unaffected.
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