Shapro

Assertedly, Jacob Shemano engaged in the factoring business as National Consumers Credit Plan and Gary Financial Corporation. Appellant loaned some $60,000 to Shemano for the same. Demand was made upon him for payment, but he is insolvent. Appellant *791 brought this action against Golden Gate National Bank, Shemano, and the six other respondents, asserting that he was a depositor in the Golden Gate National Bank, of which Shemano was also president and its chief executive officer; that Shemano made false and fraudulent representations to induce the loans, to the effect that the Golden Gate National Bank was his bank, that the bank owned the National Consumers Credit Plan and was liable for its debts.

Individual liability was claimed against the other respondents, the individual directors, on the ground that they well knew or should have known in the exercise of reasonable care and prudence that Shemano was using his official capacity to borrow such money for his private gain, but nevertheless permitted him to remain as president and thus enabled him to defraud appellant.

Following their answers to the complaint, the six directors defendant, other than Shemano, moved…