Director liability for unrecovered company GST: joint and several responsibility unless lack of gross neglect is proven. Where tax, interest or penalty owed by a private company for supplies cannot be recovered, every person who was a director during the relevant period is jointly and severally liable unless he proves non recovery is not attributable to any gross neglect, misfeasance or breach of duty. On conversion to a public company, that director liability does not apply to unrecovered amounts attributable to the private company prior to conversion, though personal penalties on directors 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 unrecovered company GST: joint and several responsibility unless lack of gross neglect is proven.
Where tax, interest or penalty owed by a private company for supplies cannot be recovered, every person who was a director during the relevant period is jointly and severally liable unless he proves non recovery is not attributable to any gross neglect, misfeasance or breach of duty. On conversion to a public company, that director liability does not apply to unrecovered amounts attributable to the private company prior to conversion, though personal penalties on directors remain unaffected.
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