The directors of a loan company were empowered to borrow money, but clirectors who were ‘concerned in or participated in the profits of any contract with the company, vacated their offices. The chairman lent money to the company at high interest, which was afterwards lent out at a profit. Held, that this was warranted by the rules.
Discounting the bills of a director is a lending of money within a clause prohibiting loans to shareholders
Decree to compel directors in a joint stock company to take shares subscribed for by them, and which were transferable, refused.
Citations:
[1859] EngR 343, (1859) 27 Beav 398, (1859) 54 ER 156
Links:
Jurisdiction:
England and Wales
Company
Updated: 15 May 2022; Ref: scu.287695