https://www.taxtmi.com/caselaws?id=96905 Directors who authorised or permitted trading beyond the company's objects (gambling in differences) breached their fiduciary duty and are jointly and severally liable to the company for the resulting loss; one director's liability is reduced to account for losses incurred before his board membership. By contrast, directors who had no reasonable grounds for suspicion and who reasonably relied on properly appointed auditors are not liable for a co-director's concealed borrowings and misappropriation used to repay a third party; liability to repay that third-party claim is therefore not imposed on those directors. en-us Thu, 10 Feb 1944 00:00:00 +0630 Fri, 13 Jan 2012 10:26:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96905 Directors who authorised or permitted trading beyond the company's objects (gambling in differences) breached their fiduciary duty and are jointly and severally liable to the company for the resulting loss; one director's liability is reduced to account for losses incurred before his board membership. By contrast, directors who had no reasonable grounds for suspicion and who reasonably relied on properly appointed auditors are not liable for a co-director's concealed borrowings and misappropriation used to repay a third party; liability to repay that third-party claim is therefore not imposed on those directors. Case-Laws Companies Law Thu, 10 Feb 1944 00:00:00 +0630 https://www.taxtmi.com/caselaws?id=96905