1. #1
    Unregistered

    If the company comes under losses that have to bear it Owner or board of Directors?

    A company is managed by the owner and board of directors. If at all company comes under loss and is at the stage of winding up, who has to bear the loss. Is it the owner on whose capital this business running or the board of directors who manages the whole operations of the company?

  2. #2
    sanju0770 Array
    Join Date
    Oct 2012
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    181

    Re: If the company comes under losses that have to bear it Owner or board of Directors?

    Dear..

    If a company is running on somebody else's money and that person is recruiting some person to become Board of director to that company then also the profit and losses always go to the owner of the company. The board of directors will not have to bear any losses as they are not the owner of the company, They are just the employee of the company recruited by the owner.. The owner can fire them from the job but can not expect that financial losses will be bear by the board of directors.

    Hope it will help

    Cheers...!!!

  3. #3
    anu2 Array
    Join Date
    Oct 2012
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    5

    Re: If the company comes under losses that have to bear it Owner or board of Directors?

    hai..
    Your question is too nice , The board of directors taking the decisions only. The managers are take the decisions. Losse 100% main the board of the directors only. The managers are the workers in that company only.
    ALL THE BEST....

  4. #4
    Labournet Law Consultancy Array
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    Re: If the company comes under losses that have to bear it Owner or board of Directors?

    If the company is under loss all the share holders has to bear its costs.

    In a company the owners are the share holder of the company who take care of the companies. Company is a separate legal entity. There is no work is OWNER in the companys act.

    If the board of directors are the share holders of the company then they will also have to bear the cost of winding up and they have to bear the cost according to the number of share they own in the company.
    LabourNET Law Consultancy
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