Re Ciro Citterio plc [2002] 1 BCLC 672; 2 All ER 717

Facts: A consensual loan by a company to a director which breached s 330 of the CA 1985 did not give rise to a constructive trust. Such a transaction was voidable and valid until it was avoided.

Principle: A loan to a director would not inevitably amount to a misapplication of company funds and would not therefore necessarily amount to a breach by the director of his trusteeships of company assets.

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