Legal Tip No. 77

Personal Liability of Directors- I

If the number of members of a public company is reduced below 7 or of a private company reduced below 2 and carries on business far more than 6 months, in that case, the members including the Directors shall be personally liable for the payment of the whole debts of the Company and may be sued by the Creditors u/s 45 of the Companies Act,1956

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