Director liability: directors face joint and several payment responsibility for unrecoverable tax unless absence of gross neglect is proven. Directors of a private company are jointly and severally liable for tax, interest or penalty due for supplies that cannot be recovered from the company unless the director proves non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty. If the private company is converted into a public company, that joint and several liability for amounts outstanding from the private company period does not apply to former directors, though 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: directors face joint and several payment responsibility for unrecoverable tax unless absence of gross neglect is proven.
Directors of a private company are jointly and severally liable for tax, interest or penalty due for supplies that cannot be recovered from the company unless the director proves non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty. If the private company is converted into a public company, that joint and several liability for amounts outstanding from the private company period does not apply to former directors, though personal penalties on a director remain unaffected.
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