https://www.taxtmi.com/caselaws?id=98563 Section 543 misfeasance liability under the Companies Act, 1956 requires proof of actual loss attributable to the impugned conduct. The Kerala High Court treated the directors as liable where they knowingly participated in concealment of defalcations through fictitious advances and approved an unlawful dividend out of a loss-making bank's capital, but refused surcharge where the liquidator could not quantify irrecoverable advances with sufficient certainty or where liability would duplicate the same loss under another head. The Court also excluded a director who was not present when the balance-sheet and dividend were approved. Liability was sustained only on the proved heads of misapplication and concealment. en-us Tue, 29 Oct 1968 00:00:00 +0530 Sat, 21 Jan 2012 11:39:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98563 Section 543 misfeasance liability under the Companies Act, 1956 requires proof of actual loss attributable to the impugned conduct. The Kerala High Court treated the directors as liable where they knowingly participated in concealment of defalcations through fictitious advances and approved an unlawful dividend out of a loss-making bank's capital, but refused surcharge where the liquidator could not quantify irrecoverable advances with sufficient certainty or where liability would duplicate the same loss under another head. The Court also excluded a director who was not present when the balance-sheet and dividend were approved. Liability was sustained only on the proved heads of misapplication and concealment. Case-Laws Companies Law Tue, 29 Oct 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98563