Directors standing surety warns that furnishing company surety for outsiders risks personal liability and is ultra vires. A government circular warns that a director furnishing the company's surety for an outsider accused in criminal proceedings is ultra vires and may be prejudicial to the company's interests; directors are instructed not to expose themselves or the company to the risk of standing sureties for accused outsiders because such conduct may attract personal liability for acting outside corporate authority.
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.
Directors standing surety warns that furnishing company surety for outsiders risks personal liability and is ultra vires.
A government circular warns that a director furnishing the company's surety for an outsider accused in criminal proceedings is ultra vires and may be prejudicial to the company's interests; directors are instructed not to expose themselves or the company to the risk of standing sureties for accused outsiders because such conduct may attract personal liability for acting outside corporate authority.
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