Section 316Personal liability of directors and officers

What this section means

From the guide: Director liability and long service contracts under CAMA 2020

• A director’s liability can be made unlimited only if the memorandum so provides (section 314), and a director in default can be personally liable to refund money a company received for a stated purpose and applied otherwise with intent to defraud (section 316).
• Section 316 applies where a company receives money by way of a loan for a specific purpose, or receives money or other property as an advance payment for a contract or project, and with intent to defraud does not apply it for that purpose.