https://www.taxtmi.com/caselaws?id=98001 Directors may be held liable for misfeasance where, in breach of fiduciary duty, they knowingly sanction a transaction that substitutes recoverable company claims with illusory security and causes loss to the company. The article explains that acceptance of worthless security, in the face of known prior encumbrances and the debtor's financial weakness, can amount to misapplication of company funds under section 235 of the Indian Companies Act, 1913. It also notes that liability may be apportioned differently among directors: a participant without personal gain may obtain discretionary relief under section 281, with liability reduced rather than imposed in full. en-us Fri, 15 Feb 1963 00:00:00 +0530 Wed, 18 Jan 2012 17:33:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98001 Directors may be held liable for misfeasance where, in breach of fiduciary duty, they knowingly sanction a transaction that substitutes recoverable company claims with illusory security and causes loss to the company. The article explains that acceptance of worthless security, in the face of known prior encumbrances and the debtor's financial weakness, can amount to misapplication of company funds under section 235 of the Indian Companies Act, 1913. It also notes that liability may be apportioned differently among directors: a participant without personal gain may obtain discretionary relief under section 281, with liability reduced rather than imposed in full. Case-Laws Companies Law Fri, 15 Feb 1963 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98001