Misapprociation of Fund by Director

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Nitesh Jain (Querist)
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17 June 2010 One of the Director of the company purchased a property at very high rate.
Now what actions company can initiate against that director under the Companies Act, 1956

Ankur Garg

Ankur Garg (Expert)
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18 June 2010 Hi,

This activity from director is a misuse of his fiduciary position and breach of trust. He is liable to repay the secrete profit earned by the said transaction. As per my understanding a civil suit can be filed against the director to recover the money.

For more specific solution go for a legal advice

Best Regards

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