Rajesh, the Chairman of a company borrowed ₹15 crore from Reliable Bank, Patna under a promissory note. A suit was filed for the recovery of debts on the basis of the promissory note executed by the Chairman. The company
CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · December 2014
Rajesh, the Chairman of a company borrowed ₹15 crore from Reliable Bank, Patna under a promissory note. A suit was filed for the recovery of debts on the basis of the promissory note executed by the Chairman. The company refused to accept the liability on the plea that the Chairman had borrowed funds without authorisation from the company. Will the company succeed? Advise.
Topics: Company Law Compliance
Related Questions in this Topic
- After conducting the last general meeting in July, 2014, the Chairman immediately went abroad for medical treatment. Due...
- A company "issuer" was in the process of making an offer to Right Issue of the specified securities. All the process was...
- You as a practising Company Secretary has been approached by Popular Bank to carry out due diligence regarding the loan ...
- 'The successful merger demands that strategic planners are sensitive to the human issues of the organizations'. For this...
- Distinguish between the following: ISO 14001:2015 and ISO 14004:2016 on environmental management systems.