Acompany, because it is artificial entity, can only act by and through natural person who is called the director of company.
It is, of course, the duty of the director to act so as best to promote the interests of corporation but, in spite of this, may be a director place himself or herself in a position, in which there is a conflict between his or her duties to the company; and his or her personal interests or duties to others as for instance a director may receive a loan from the company or it may inter in to any guarantee of providing any security in connection with a loan made by any person to the director or he or she may misuse of commercial information or opportunity of the company or may be interested in a contract with it or may carries business competing with that of the company.
In this Article the legal sanction and consequence of such transaction has been considered.
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