https://www.taxtmi.com/caselaws?id=99592 Section 543 liability requires substantive proof of misapplication, retention, misfeasance, or breach of trust by the directors; it cannot rest on doubtful debts or advances merely shown in the company's books. Where the sums had remained outstanding for years, were treated as doubtful or irrecoverable, had become time-barred by winding up, and no material showed a personal act of negligence or direct nexus to any individual director, liability was not established. On the facts proved, the former directors were not accountable under section 543 and recovery failed. en-us Thu, 09 Feb 1978 00:00:00 +0530 Fri, 27 Jan 2012 18:57:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99592 Section 543 liability requires substantive proof of misapplication, retention, misfeasance, or breach of trust by the directors; it cannot rest on doubtful debts or advances merely shown in the company's books. Where the sums had remained outstanding for years, were treated as doubtful or irrecoverable, had become time-barred by winding up, and no material showed a personal act of negligence or direct nexus to any individual director, liability was not established. On the facts proved, the former directors were not accountable under section 543 and recovery failed. Case-Laws Companies Law Thu, 09 Feb 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99592