https://www.taxtmi.com/caselaws?id=97604 Misfeasance liability under section 235 of the Indian Companies Act, 1913 arises only on proof of personal culpable conduct amounting to breach of trust, wilful negligence, or reckless indifference causing pecuniary loss. The text explains that directors who knowingly allowed unsecured and improvident advances, and ignored obvious irregularities, could be treated as liable, while directors who honestly relied on the managing director and had no reason for suspicion were not liable. It also states that the managing director was regarded as primarily responsible for manipulated entries, fraudulent advances, and the G.P. Notes misappropriation, whereas the secretary was not fixed with liability absent clear proof of personal involvement. Non-joinder of other directors did not defeat the proceeding. en-us Mon, 11 Aug 1958 00:00:00 +0530 Tue, 17 Jan 2012 13:31:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=97604 Misfeasance liability under section 235 of the Indian Companies Act, 1913 arises only on proof of personal culpable conduct amounting to breach of trust, wilful negligence, or reckless indifference causing pecuniary loss. The text explains that directors who knowingly allowed unsecured and improvident advances, and ignored obvious irregularities, could be treated as liable, while directors who honestly relied on the managing director and had no reason for suspicion were not liable. It also states that the managing director was regarded as primarily responsible for manipulated entries, fraudulent advances, and the G.P. Notes misappropriation, whereas the secretary was not fixed with liability absent clear proof of personal involvement. Non-joinder of other directors did not defeat the proceeding. Case-Laws Companies Law Mon, 11 Aug 1958 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=97604