Director surety liability: standing surety for unrelated accused is ultra vires and risks personal liability. Director standing surety for an outsider not connected with the company's administration is ultra vires the company; furnishing the company's surety in such cases exceeds corporate authority. Directors should not expose themselves or the company to the risk of acting as sureties for unrelated persons, since they may be held personally liable for acting outside the company's authority and in a manner prejudicial to the company's interests.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Director surety liability: standing surety for unrelated accused is ultra vires and risks personal liability.
Director standing surety for an outsider not connected with the company's administration is ultra vires the company; furnishing the company's surety in such cases exceeds corporate authority. Directors should not expose themselves or the company to the risk of acting as sureties for unrelated persons, since they may be held personally liable for acting outside the company's authority and in a manner prejudicial to the company's interests.
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