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Remedy available if Director Transfers funds without approval of other
11-Sep-2023 (In Corporate Law)
if a company has 2 directors and the same are members of the company as well. one of the directors transfer funds of the company without the prior approval of the other director. then what is the remedy available to the other director. ipc or civil? any case law?
Hello client.
I have read ur query in ur query ur saying about trans0her of funds which belongs to company itself to some other person without information to the other director of the said company in any manner nor in the form of any board meeting nor in the form of any personal intimation. In this condition both criminal as well as civil both liabilities arises against the said person who have done this fraud with u.
Thanks
I have read ur query in ur query ur saying about trans0her of funds which belongs to company itself to some other person without information to the other director of the said company in any manner nor in the form of any board meeting nor in the form of any personal intimation. In this condition both criminal as well as civil both liabilities arises against the said person who have done this fraud with u.
Thanks
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Adv. Vishwanath Pratap Singh
Delhi | 500+ Answers
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The details of the transfer are crucial to understand for any advise. Did the director have the power to sign/ transfer the amount on behalf of the company and whether there was any limit to such transactions? If indeed the director acted in a fraudulent manner, the company may have right to act under both civil and criminal laws.
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Adv. Joydeep Nath
Delhi | 100+ Answers
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All acts of Directors must be done by way of resolution. Given the facts in the present case, if the Director has not been been given any authority for transferring funds, then his/her acts would be 'fraud' on the company and shareholders. You may refer Section 447 of the Companies Act, 2013.
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Adv. S Shiva
Delhi | 25+ Answers
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