https://www.taxtmi.com/caselaws?id=96732 Directors who knowingly participate in or facilitate an unauthorised payment of company funds after commencement of winding up are liable for misfeasance and breach of trust, even if they did not personally sign the cheque. The Court treated the payment as void and held the director liable only to the extent of the payment for which his responsibility was established. The claim was not barred by limitation because the liability arose from the director's duty and the company's constitution, so the residuary limitation period applied. Relief from liability was refused because the transaction was deliberate, unauthorised, and beyond the company's powers, and an indemnity clause did not protect against ultra vires use of company funds. en-us Tue, 10 Nov 1936 00:00:00 +0530 Tue, 10 Jan 2012 16:27:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96732 Directors who knowingly participate in or facilitate an unauthorised payment of company funds after commencement of winding up are liable for misfeasance and breach of trust, even if they did not personally sign the cheque. The Court treated the payment as void and held the director liable only to the extent of the payment for which his responsibility was established. The claim was not barred by limitation because the liability arose from the director's duty and the company's constitution, so the residuary limitation period applied. Relief from liability was refused because the transaction was deliberate, unauthorised, and beyond the company's powers, and an indemnity clause did not protect against ultra vires use of company funds. Case-Laws Companies Law Tue, 10 Nov 1936 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96732