Under the memorandum of incorporation of Greenfield Investments Ltd, the directors had the power to borrow up to R5-million, without the consent of the general meeting. The directors themselves lend R10-million to the company, without such consent, and took debentures. Is the company liable for the R10-million?

Under the memorandum of incorporation of Greenfield Investments Ltd, the directors had the power to borrow up to R5-million, without the consent of the general meeting. The directors themselves lend R10-million to the company, without such consent, and took debentures. Is the company liable for the R10-million?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 16DQ

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