that will depend upon the nature of duties assigned to the director
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 10 years ago in Business Law
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4 Answers
Where can we find the nature of duties assigned to the director. Is it anywhere in the MOA or AOA? In fact the whole time director is my friend and wishes to find the liabilities of the independent director to seek his support to stop it, while the independent director says he does not care as he is immune to it. It is very confusing though.
Asked 10 years ago
yes it has to be on MOU
Read the terms and conditions of Mou.
Apart from this read the books and judgment regarding the liability of director
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 .
