| Source: | All England Reporter |
| Publisher Citation: | [2001] All ER (D) 463 (Jul) |
| Court: | Chancery Division |
| Judge: | Hart J |
| Representation | John Dagnall (instructed by Boyd & Hutchinson) for the claimants. |
| Leslie Kosmin QC and Catherine Roberts (instructed by Manches) for the defendants. | |
| Judgment Dates: | 31 July 2001 |
Catchwords
Company - Director - Power - Exercise of independent judgment - Claimant directors seeking specific performance of alleged agreement allocating shares - Defendant director claiming undue influence - Company seeking repayment of bonuses paid to claimants without agreement of shareholders - Whether agreement valid - Whether claimants entitled to bonuses.
The Case
On the evidence, the relationship between the parties attracted the presumption of undue influence, and cast upon the presumed influencer the onus of showing that the agreement between directors of the company was entered into by the defendant director with a full understanding of its implications. The claimant directors had failed to discharge that burden and prove that the defendant director had signed a document allocating them shares in the company independently. However, the claimants were entitled to retain the bonuses given to them as directors of the company as a result of the application of the Duomatic principle.
Practice Areas
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