• Liability of an independent director of the company.

My friend works in   a  call center where I suspect that there are a lot of illegal activities going on like drugs, night activities etc . I happened to meet the independent director accidentally and when I told him about it , his answer was an unfazed " I don't have to care I am only an independent director". Is it true that if things happen with the knowledge of the Independent Director, he is still free of any guilt and could let it continue happen so that the business should not interrupt. Is the liability only with the whole time director?
Asked 3 years ago in Business Law from Trivandrum, Kerala
that will depend upon the nature of duties assigned to the director
Rajeev Bari
Advocate, New Delhi
1506 Answers
92 Consultations

3.5 on 5.0

yes it has to be on MOU
Rajeev Bari
Advocate, New Delhi
1506 Answers
92 Consultations

3.5 on 5.0

Read the terms and conditions of Mou.
Apart from this read the books and judgment regarding the liability of director
Nadeem Qureshi
Advocate, New Delhi
4486 Answers
204 Consultations

4.9 on 5.0

an independent director is not in charge of day to day management of the company . if however any wrong doing has been brought to his notice he should place it before the Board of directors for necessary action in this regard .
Ajay Sethi
Advocate, Mumbai
38688 Answers
2171 Consultations

5.0 on 5.0

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