https://www.taxtmi.com/caselaws?id=96764 Interested-director transactions are voidable where the counterparty knew, or must be taken to have known, of the directors' conflicting interest and cannot rely on indoor management. The equitable mortgage was therefore voidable by the liquidator and the secured claim failed. Internal borrowing limits restrict directors' authority but do not make loans ultra vires the company where funds were received and applied for corporate purposes. The unsecured debt remained repayable despite earlier excess borrowing, and the account was not reopened to remove interest on excess advances. en-us Fri, 11 Mar 1938 00:00:00 +0530 Tue, 10 Jan 2012 18:21:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96764 Interested-director transactions are voidable where the counterparty knew, or must be taken to have known, of the directors' conflicting interest and cannot rely on indoor management. The equitable mortgage was therefore voidable by the liquidator and the secured claim failed. Internal borrowing limits restrict directors' authority but do not make loans ultra vires the company where funds were received and applied for corporate purposes. The unsecured debt remained repayable despite earlier excess borrowing, and the account was not reopened to remove interest on excess advances. Case-Laws Companies Law Fri, 11 Mar 1938 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96764