https://www.taxtmi.com/caselaws?id=113089 Section 543 of the Companies Act, 1956 requires substantive proof of misapplication, retention, misfeasance, breach of trust, or personal gain before damages can be recovered from a director. On the stated facts, the director had participated in board decisions on loans, but there was no proof that he was a proprietor or partner in the borrowing concerns, personally benefited from the transactions, or misappropriated funds. Settled or partially settled accounts also undermined the claim. Mere imprudent or bad commercial judgment, without actionable misconduct, was insufficient to establish liability, and the recovery claim failed. en-us Fri, 04 May 2007 00:00:00 +0530 Thu, 03 May 2012 17:03:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=113089 Section 543 of the Companies Act, 1956 requires substantive proof of misapplication, retention, misfeasance, breach of trust, or personal gain before damages can be recovered from a director. On the stated facts, the director had participated in board decisions on loans, but there was no proof that he was a proprietor or partner in the borrowing concerns, personally benefited from the transactions, or misappropriated funds. Settled or partially settled accounts also undermined the claim. Mere imprudent or bad commercial judgment, without actionable misconduct, was insufficient to establish liability, and the recovery claim failed. Case-Laws Companies Law Fri, 04 May 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=113089