Thursday, October 15, 2015

Principle of alter ego can’t be applied in reverse direction to make directors liable for an offence committed by company.

The Supreme Court of India held that principle of alter ego can only be applied to make companyliable for an act committed by a person or group of persons who control affairs of company as they represent alter ego of company; however it cannot be applied in reverse direction to make directors of company liable for an offence committed by company.

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