https://www.taxtmi.com/caselaws?id=98292 An arrangement providing for release of a shareholder-debtor's liability on a change of control was not inherently unlawful, because it could be performed lawfully if the incoming controllers supplied consideration sufficient to justify the debt release. The defendant's insistence on an effective release as a term of selling his shares did not, without more, amount to misfeasance, and his lack of knowledge of company law was relevant. Even if the release was later implemented without proper consideration, that did not make him personally responsible. The alleged breach of section 54 therefore did not establish a cause of action against him. en-us Fri, 27 May 1966 00:00:00 +0530 Thu, 19 Jan 2012 18:54:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98292 An arrangement providing for release of a shareholder-debtor's liability on a change of control was not inherently unlawful, because it could be performed lawfully if the incoming controllers supplied consideration sufficient to justify the debt release. The defendant's insistence on an effective release as a term of selling his shares did not, without more, amount to misfeasance, and his lack of knowledge of company law was relevant. Even if the release was later implemented without proper consideration, that did not make him personally responsible. The alleged breach of section 54 therefore did not establish a cause of action against him. Case-Laws Companies Law Fri, 27 May 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98292