Source: All England Reporter
Publisher Citation: [2017] All ER (D) 90 (Dec)
Neutral Citation: [2017] EWHC 3228 (Ch)
Court: Chancery Division
Judge:

Registrar Barber

Representation Joseph Curl (instructed by Darwin Gray LLP) for the applicants.
  Christopher Brockman (instructed by TLT LLP) for the first respondent.
  The second respondent did not appear and was not represented.
Judgment Dates: 13 December 2017

Catchwords

Company - Insolvency - Liquidator of company alleging respondent directors acting in breach of duties owed to company

The Case

Company Insolvency. The respondent directors, by effecting three credits against their directors' loan accounts with the second applicant company, had acted in breach of their fiduciary duty to act in the best interests of the creditors of the company, contrary to of the Companies Act 2006 (). The Chancery Division so held on an application by the company's liquidator. The court further ruled that the directors had misapplied the company's assets for their own benefitand had failed to exercise their powers for proper purposes, contrary to s171, and were, accordingly, misfeasant for the purposes of s212 of the . The directors were ordered, jointly and severally, to repay the sum of 758,020 to the company, together with interest.

Practice Areas

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