Section 316: Personal liability of directors and officers.

Where a company—(a) receives money by way of loan for specific purpose;
(b) receives money or other property by way of advance payment for the execution of a contract or project; or
(c) with intent to defraud, fails to apply the money or other property for the purpose for which it was received, every director or other officer of the company who is in default is personally liable to the party from whom the money or property was received for a refund of the money or property so received and not applied for the purpose for which it was received and nothing in this section affects the liability of the company itself.