If signature of other directors have been forged file case of cheating and criminal breach of trust against the fraudster
under section 406,420 of IPC
2) also sue the company to recover loan amount with interest
Working directorSubmission of Board resolution without partner approval in Private limited company
I would like to know about the following information about United Oil and Gas Engineering Pvt.Ltd Company working director who is authorized signatory having 20% share holding and took loan with out approval of 80% share holders. Second thing is he submitted fraud document / DSC of another 40% share holder director as a partial guarantor without knowing to him. As of now 20% share holder and director not paying the loan and its raised to showcase notice to company and other directors. I am looking for advice for further handling.
Asked 2 years ago in Business Law
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4 Answers
As per companies Act 2013, if the private company has accepted any loan from any person except director, then they need to file a statement in prescribed form with the Registrar of Companies (RoC).
As per Section 179(3) of the Act the Board of Directors of a company by means of a resolution passed at its meeting have a power to borrow monies
Borrowings are an essential part of Companies. The option of borrowings depends on the need of the companies and the nature of borrowings. Any irregular and irresponsible act may result in the insolvency of the company which may cause considerable losses to them. So to facilitate the smooth functioning of the company and protect the interests of shareholders, a company has to comply with various compliances under the Companies Act, 2013.
In view of the law involved in this, the unilateral act of one of the shareholders to obtain loan on the name of company without a resolution passed in the general meeting of the directors can be considered as an act fraud and breach of trust.
Besides having made another shareholder as a guarantor to the loan without the consent or knowledge of the said person involves the offences of impersonating and cheating.
The company can take legal action agaisnt the fraudster and disclaim the loan liability since it was done in the personal capacity of the borrower misusing the company's name.
The company cannot be held liable for the loan borrowed by one of the shareholders without the approval of the company.
It is an act of breach of trust, cheat, fraud and many more offences involved in this act for which the company can take proper legal action after arriving at a decision through a board of directors meeting.
You can file the same in nclt or company law board
Dear client I'm sorry to hear that but in this case that committed by the director is not valid and against the company law
