1(i). The directors of a company were authorized under the Articles of Association to borrow beyond Rs.10 lakh only with the prior approval of a resolution of the general body. However, without any such resolution, one of the directors on the Board of the company lent Rs 50 lakh to the company. On maturity, the company refunded only Rs. 10 lakh. Advise the concerned director about the legality of company's action. Can he plead doctrine of indoor management in support of his claim? What will be the answer if the loan had been given by a third party having no connection with the company?

1 (ii). Massey held almost the entire share capital of a timber company except for one share which was allotted to his wife. He was also a substantial creditor of the company. Massey took a general insurance policy on the stock of timber lying in company's godown. One night, the timber was destroyed in a fire. Can Massey file claim against the insurance company? Give necessary arguments.