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2020 (2) TMI 1417 - AT - SEBIMisfeasance committed by the company - Liability of directors - Collective Investment Scheme - part of the mobilization of the fund was collected during the period when the appellant was appointed as a director and therefore have been held liable - WTM directed the company and its directors including the appellant to abstain from collecting any money from the investors or to carry out any Collective Investment Scheme including the nd further restrained the appellant and others from accessing the securities market and prohibited them from buying, selling or otherwise dealing in securities market for a period of 4 years - THAT:- Misfeasance committed by the company -HELD THAT:- An independent director shall be held liable only in respect of such acts of omission or commission by a Company which had occurred with his knowledge, attributable through a Board processes, and with his consent or connivance or where he had not acted diligently. In the instance case, there is no finding by the WTM that the acts of the Company in the collection of the funds had occurred with the appellant's knowledge or that the appellant was part of the decision making processes through Board's resolution or that the funds and the activities of the Company was being done with his consent or connivance. Further, we find that there is no finding that the appellant had not acted diligently. In fact, the record indicates the appellant was only appointed for a period of 5 months and had not attended any meeting of the Board. Thus the impugned order in so far as the appellant is concerned cannot be sustained and is quashed. The appeal is allowed to that extent.
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