Labour Law & Hr Consultant
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With all respects to Shri Umakanthansir. In proprietory concern, the proprietor is solely liable for all profits & losses if any i.e. he is liable in perosnal capacity as well as a proprietor of the firm. On the other hand as a director of Company his share is limited as mentioned in MOA(Memorandum of Association). In case any liability arises to proprietory concern, one can recover his liability from assets of Sole proprietory concern as well from personal assets of the proprietor. In case of Company, the director is liable to the extend as mentioned in MOA and not in his personal capacity unless & until he discharge any such type of document.