The directors of Usafi Ltd. Diverted some funds meant for the extension of the commercial wing of the company‟s business premises to fund the expensive wedding of a son of one of the directors. At that particular time Juma was eth secretary. Eventually became a director. At Juma‟s very first board meeting, the earlier breach was ratified. To what extent, would Juma be liable for the earlier breach.

The act of Usafi Ltd was ultravires in the wides sense which is nothing but an abuse of power of the company its officers often described as “Excess of directors‟ or transactions. • Ultravires the directors or transactions the Read More …

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