ACompany "Rail line Limited", involved in leasing railway coaches, spends an

amount of Rs 60 crore on the production of the movie XYZ. The movie fails at the

box office and the Company incurs a loss to the tune of Rs 50 crores. The

shareholders of the company object to such investment made by the company.

They filed a suit in the court of law making the director personally responsible and

to make good the loss. Will they succeed? Give suitable reasons in support of your

answer