Section 378T Liability of directors
- Chapter
- XXIA · Producer Companies
- Amendments
- 1
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021378T. Liability of directors.—
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(1) When the directors vote for a resolution, or approve by any other means, anything done in contravention of the provisions of this Act or any other law for the time being in force or articles, they shall be jointly and severally liable to make good any loss or damage suffered by the Producer Company.
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(2) Without prejudice to the provisions contained in sub-section (1), the Producer Company shall have the right to recover from its director—
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(a) where such director has made any profit as a result of the contravention specified in sub-section (1), an amount equal to the profit so made;
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(b) where the Producer Company incurred a loss or damage as a result of the contravention specified in sub-section (1), an amount equal to that loss or damage.
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(3) The liability imposed under this section shall be in addition to and not in derogation of a liability imposed on a director under this Act or any other law for the time being in force.