The two company Directors of a Ltd company made loans to the Company's name with the consent of the bank and used the loan proceeds to settle personal loans with the same Bank. Settlement effected by transferring funds from the company's loan account to the directors loan accounts.
Are the Directors criminally liable for steeling the compan'ys money?
Is the Bank liable for granting loan to the company for the purpose of settlement of directors default loans with the same bank?
Answer
The directors are guilty. The banker might be.
No comments:
Post a Comment