https://www.taxtmi.com/caselaws?id=98001 Directors owe fiduciary duties and may incur misfeasance liability where they knowingly, or where circumstances require them to know, that a transaction substitutes recoverable company claims with practically worthless security. Sanctioning an arrangement that transfers liabilities to an asset-holding company despite its weak financial position and prior encumbrances can constitute deliberate misapplication of company assets causing loss. Liability may differ according to each director's role, benefit obtained and relevant circumstances: directors principally responsible may bear full liability, while discretionary relief can reduce liability for a director who participated but did not personally profit. Other respondents may be exonerated where responsibility is not established. 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 owe fiduciary duties and may incur misfeasance liability where they knowingly, or where circumstances require them to know, that a transaction substitutes recoverable company claims with practically worthless security. Sanctioning an arrangement that transfers liabilities to an asset-holding company despite its weak financial position and prior encumbrances can constitute deliberate misapplication of company assets causing loss. Liability may differ according to each director's role, benefit obtained and relevant circumstances: directors principally responsible may bear full liability, while discretionary relief can reduce liability for a director who participated but did not personally profit. Other respondents may be exonerated where responsibility is not established. Case-Laws Companies Law Fri, 15 Feb 1963 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98001