https://www.taxtmi.com/caselaws?id=98194 Interested-director participation in a share allotment prevents the director from voting or being counted for quorum, but the resulting resolution is irregular and voidable rather than void. The company may waive the irregularity and affirm the allotment, while a participant who treated it as operative may be estopped from challenging it. Book entries crediting a borrower and debiting another account, supported by a promissory note, may constitute an enforceable loan without physical cash transfer. A plea of statutory illegality not properly raised at the earlier stage need not be considered. The allotment remained binding and the loan was enforceable. en-us Thu, 15 Apr 1965 00:00:00 +0530 Wed, 24 Jun 2015 16:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98194 Interested-director participation in a share allotment prevents the director from voting or being counted for quorum, but the resulting resolution is irregular and voidable rather than void. The company may waive the irregularity and affirm the allotment, while a participant who treated it as operative may be estopped from challenging it. Book entries crediting a borrower and debiting another account, supported by a promissory note, may constitute an enforceable loan without physical cash transfer. A plea of statutory illegality not properly raised at the earlier stage need not be considered. The allotment remained binding and the loan was enforceable. Case-Laws Companies Law Thu, 15 Apr 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98194