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Crime
Chhattisgarh HC Rules Directors Not Criminally Liable Solely on Designation
✍️ Live Law
🗓 24 Jul 2026, 08:03 PM
👁 56
The Chhattisgarh High Court has ruled that a director cannot be held criminally liable merely because of their designation, emphasizing that other factors must be considered.
Chhattisgarh High Court has ruled that a director cannot be held criminally liable solely because of their designation, underscoring that other elements must be present to establish liability.
The judgment clarifies that the designation of a director, by itself, does not automatically make them a criminal defendant. The court emphasized that a finding of criminal liability requires evidence of wrongful conduct or breach of statutory duties.
This decision is expected to impact corporate governance, as it delineates the boundary between civil responsibilities and criminal accountability for board members.
The ruling serves as a reminder that directors must be evaluated on their actions, not merely on their titles, when determining criminal culpability.
The judgment clarifies that the designation of a director, by itself, does not automatically make them a criminal defendant. The court emphasized that a finding of criminal liability requires evidence of wrongful conduct or breach of statutory duties.
This decision is expected to impact corporate governance, as it delineates the boundary between civil responsibilities and criminal accountability for board members.
The ruling serves as a reminder that directors must be evaluated on their actions, not merely on their titles, when determining criminal culpability.