Where the company and any director transact bills without obtaining the approval of the board of director, the provisions of Article 398 of Commercial Act shall apply ipsofacto. However, any transaction without the approval shall be in force, but wher...
Where the company and any director transact bills without obtaining the approval of the board of director, the provisions of Article 398 of Commercial Act shall apply ipsofacto. However, any transaction without the approval shall be in force, but where any act arising out of a bill is impartial, a personal defense may be set up against it. The term "bad faith" of a third party which makes the transactions in violation of the provisions of Article 398 of Commercial Act invalid means that the third party acquires the bill with knowledge that the board of directors has not approved it, and it shall be deemed to suffice that he has acted to the detriment of the debtor.