https://www.taxtmi.com/caselaws?id=467089 Misutilisation of preferential issue proceeds by the company and its director was found where funds were advanced as undocumented interest free loans outside stated objects; this conduct breached the PFUTP/SEBI statutory scheme and led to findings of fraudulent conduct and penalties against the company and one director. Failure to file and disclose statements of deviation under LODR was established against the company. A shareholder ratification was held invalid because statutory dispatch and disclosure requirements were not met, constituting misleading information. Audit committee members were not held liable where no deviation statements were placed before them. Monetary penalties were imposed on the company and one director. en-us Wed, 28 Jun 2023 00:00:00 +0530 Thu, 05 Mar 2026 18:28:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=467089 Misutilisation of preferential issue proceeds by the company and its director was found where funds were advanced as undocumented interest free loans outside stated objects; this conduct breached the PFUTP/SEBI statutory scheme and led to findings of fraudulent conduct and penalties against the company and one director. Failure to file and disclose statements of deviation under LODR was established against the company. A shareholder ratification was held invalid because statutory dispatch and disclosure requirements were not met, constituting misleading information. Audit committee members were not held liable where no deviation statements were placed before them. Monetary penalties were imposed on the company and one director. Case-Laws SEBI Wed, 28 Jun 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=467089