HC explains Liability of professionals acting as Non-executive directors

Rajendra Shah S/o. Ambalal Shah Vs State of Maharashtra & Anr. (Bombay High Court) The petitioner had not signed the books of accounts but he has signed the balance sheet. The submissions of the learned Senior Counsel that the said balance sheet was signed in a routine manner as the signature of the Managing Director and the chairman were appearing, carries substance. Thus on the basis of only signature, it cannot be said that there is enough material to show the knowledge of the petitioner of disbursement of the loan without prior approval. A significant circumstance also to be addressed ...