Section 243, The Companies Act, 2009

(1) In a limited company, the liability of the directors ormanagers or of the managing director, may, if so provided by the memorandum be unlimited. (2) In a limited company in which the liability of a director or manager is unlimited, the directors and any managers of the company and the member who proposes a person for election or appointment to the office of director or manager, shall add to the proposal a statement that the liability of the person holding that office shall be unlimited, and before the person accepts the office or acts therein, notice in writing that his liability shall be unlimited shall be given to him by the following or one of the following persons, namely, the promoters, directors, managers and the secretary of the (3) If any director, manager or promoter defaults in adding such a statement, or if any promoter, director, manager or secretary fails to give such notice, he shall be guilty of an offence and be liable to a fine not exceeding Le.3,000,000 and shall also be liable for any damage which the person so elected or appointed may sustain from the default.