Source: All England Reporter
Publisher Citation: [2002] All ER (D) 511 (May)
Neutral Citation: [2002] EWCA Civ 779
Court: Court of Appeal, Civil Division
Judge:

Simon Brown, Mummery and Hart LJJ

Representation Simon Russen (instructed by Abrahams Dresden) for the company.
  Christopher Spratt (instructed by Bailey Gibson) for the defendant.
Judgment Dates: 31 May 2002

Catchwords

Company - Director - Debt due to company - Receipt by director - Sums paid to director - Director leaving company - Company seeking to recover sums as loans - Whether sums remuneration or loans.

The Case

A payment could not only properly be characterised as remuneration if there was a specific agreement fixing the level or rate of remuneration or defining a formula for ascertaining a definite amount to be paid. The essence of remuneration was that it was consideration for work done or to be done. Consideration might take different forms. It was not necessarily in the conventional form of a direct payment of a regular wage, salary, cheque or credit.

Practice Areas

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