https://www.taxtmi.com/caselaws?id=276828 Liquidator's claim was not barred by limitation because the cause of action arose on winding-up and the statutory remedy was not governed by the ordinary limitation articles relied on by the directors. Directors were held liable for dividends paid out of capital where the company had no realised profits, since honest belief was not enough without reasonable diligence and independent judgment. The auditor was also liable because his duty extended beyond arithmetic checking to verifying that the accounts truly stated the company's financial position; reckless certification of false balance-sheets and dividend statements breached that duty. A separate claim for loss of grain failed because the liquidator did not prove the quantity, value, or a recoverable connection to any director's act or omission. en-us Fri, 27 Mar 1925 00:00:00 +0530 Mon, 19 Nov 2018 10:40:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276828 Liquidator's claim was not barred by limitation because the cause of action arose on winding-up and the statutory remedy was not governed by the ordinary limitation articles relied on by the directors. Directors were held liable for dividends paid out of capital where the company had no realised profits, since honest belief was not enough without reasonable diligence and independent judgment. The auditor was also liable because his duty extended beyond arithmetic checking to verifying that the accounts truly stated the company's financial position; reckless certification of false balance-sheets and dividend statements breached that duty. A separate claim for loss of grain failed because the liquidator did not prove the quantity, value, or a recoverable connection to any director's act or omission. Case-Laws Indian Laws Fri, 27 Mar 1925 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276828