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A. Stock And Co. (In Liquidation) And ... vs Dilip Kumar Chakraborty And Others on 9 July, 1993

It was argued that no action can be taken against them under section 543 (1). If they are not doing their duties in not conducting the interest of the Financial Corporation, only the Financial Corporation which M.F.A.No. 237/2002 & Co.Appeal No.38/2003 3 nominated them can taken action. The learned counsel for the official liquidator argued that even though the Financial Corporation can nominate any person notwithstanding the provisions in the Memorandum of Articles of Association or Companies Act, but, they are also accountable once they are in the Board. If amounts from the company are advanced to others and no proper action is taken to recover the same, the repaying capacity will be lost and in that way, the Financial Corporation also will be interfered and also cited the decision of the Calcutta High Court in A Stock and Company v. Dilip Kumar Chakraborti ((1996) 87 Comp. Cas. 139 Cal.) wherein it was held that nominee directors can also be held liable depending upon the role which they played in the conduct of affairs, i.e., whether they performed their statutory duties in good faith.
Calcutta High Court Cites 8 - Cited by 2 - Full Document
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