PART XA COMPANY'S MANAGEMENT; DIRECTORS AND SECRETARIES; THEIR QUALIFICATIONS, DUTIES AND RESPONSIBILITIES
Other provisions about directors and officers
Limited company may have directors with unlimited liability314
1
In the case of a limited company, the liability of the directors or of the managing director may, if so provided by the memorandum, be unlimited.
2
In the case of a limited company in which the liability of a director is unlimited, the directors of the company and the member who proposes any person for election or appointment to the office of director, shall add to that proposal a statement that the liability of the person holding that office will be unlimited.
3
Before the person accepts the office or acts in it, notice in writing that his liability will be unlimited shall be given to him by the following or one of the following persons, namely—
a
the promoters of the company,
b
the directors of the company,
c
the company secretary.
4
If a director or proposer makes default in adding such a statement, or if a promoter, director or secretary makes default in giving the notice required by paragraph (3), then—
a
he is liable to a fine, and
b
he is also liable for any damage which the person so elected or appointed may sustain from the default;
but the liability of the person elected or appointed is not affected by the default.