Tag: DirectorsDuties

15. The directors of a company bought shares from ‘A’. They disclose to him that negotiations were conducted for the sale of all the company’s shares at higher price than they were to pay to “A”. A sued to have the sale set aside will he succeed.

Facts of the Case The directors of a company purchased shares from ‘A’. Before completing the transaction, they disclosed that the company’s shares were being […]

13. ‘X’ company lends to Y company on a mortgage of its assets. The procedure laid down in the Articles for such transactions is not complied with. The directors of the two companies are the same. Is the mortgage binding upon ‘Y’ company.

Facts of the Case ‘X’ Company lent money to ‘Y’ Company against a mortgage of Y’s assets. However, the procedure prescribed in Y Company’s Articles […]