https://www.taxtmi.com/caselaws?id=96647 Fraudulent floatation was proved: promoters fabricated prospectus, allotments, minutes and commencement declarations, and diverted funds; primary perpetrators and a knowing director were held culpable while some directors were found deceived. Under Section 235 the promoters and the participating director were ordered to compensate the company for misapplication and misfeasance; quantified recovery accounted for liquidator realisations and credits. Under Section 102(2) directors who knowingly authorised illegal allotment and commencement were jointly and severally liable for losses caused. Limitation did not bar relief for proved fraud. An articles clause excluding liability cannot shield dishonest directors. en-us Fri, 20 Apr 1934 00:00:00 +0530 Tue, 10 Jan 2012 10:51:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96647 Fraudulent floatation was proved: promoters fabricated prospectus, allotments, minutes and commencement declarations, and diverted funds; primary perpetrators and a knowing director were held culpable while some directors were found deceived. Under Section 235 the promoters and the participating director were ordered to compensate the company for misapplication and misfeasance; quantified recovery accounted for liquidator realisations and credits. Under Section 102(2) directors who knowingly authorised illegal allotment and commencement were jointly and severally liable for losses caused. Limitation did not bar relief for proved fraud. An articles clause excluding liability cannot shield dishonest directors. Case-Laws Companies Law Fri, 20 Apr 1934 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96647