CONFLICT OF INTEREST

ESKAY01972 (Querist) 09 August 2016 This query is : Resolved
One of my customer is a director in Real Estate Pvt ltd company engaged in flat construction. Company is having own property and constructed apartments. As a individual he wants to buy a flat in their own project. And wants to avail loan also. Is their any legal issues...like conflict of interest...?

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N.K.Assumi (Expert) 10 August 2016
Company is a juristic person distinct from the Board of directors, as such, there is no conflict of interest. But the director is bound to repay the loan borrowed in his individual capacity. There is a classic English case of Salomon Vs Salomon 1897 AC 22.