Misfeasance, Breach of Duty and Breach of Trust
What is Misfeasance?
Misfeasance is a breach of duty or breach of trust. Directors owe fiduciary duties to their companies. The duty is that amongst other things of loyalty, not to secretly profit and to act in good faith in the best interests of the company.
What happens if you are in breach of duty or trust?
If a director has misapplied or retained any property of the company then on an application to court as to that fact a director can be compelled to repay, restore or account for the money or property of the company and thereby contribute via payment of compensation towards the assets of the company for the loss and or damage caused.