https://www.taxtmi.com/caselaws?id=96746 Directors cannot use company property to secure or discharge their personal debts without proper corporate authority, because corporate assets belong to the company and not to the directors or shareholders. A transaction of that kind is an improper exercise of directors' powers even if some incidental benefit to the company might be suggested. Alleged shareholder approval, estoppel, or an agency theory will not validate the arrangement where the company was not shown to be a sham and the other party knew the true position. The charge was therefore unenforceable against the company, and the company was entitled to recover the remaining funds. en-us Fri, 11 Jun 1937 00:00:00 +0530 Tue, 10 Jan 2012 17:04:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96746 Directors cannot use company property to secure or discharge their personal debts without proper corporate authority, because corporate assets belong to the company and not to the directors or shareholders. A transaction of that kind is an improper exercise of directors' powers even if some incidental benefit to the company might be suggested. Alleged shareholder approval, estoppel, or an agency theory will not validate the arrangement where the company was not shown to be a sham and the other party knew the true position. The charge was therefore unenforceable against the company, and the company was entitled to recover the remaining funds. Case-Laws Companies Law Fri, 11 Jun 1937 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96746