section 406
how much a director of a limited
concern liable to creditors in case of
bankcrupcy of the company. Is
section 406 of PPC applicable
Re: section 406
a director is only liable to the extent & limit of his share of capital (Paid or Unpaid) towards the company and no more. a company can sue or be sued.with out going through the facts of the case it is hard to say. If the director had played some mischief or had breached the trust or the fiduciary relation , then case is clear otherwise immediate legal action is required to clear the position.