Source: All England Reporter
Publisher Citation: [2013] All ER (D) 240 (Sep)
Neutral Citation: [2013] EWHC 2876 (Ch)
Court: Chancery Division, Companies Court

Mr John Randall QC (Sitting as a Deputy High Court Judge)

Representation Blair Leahy (instructed by Norton Rose Fulbright LLP) for the claimants.
  Thomas Roe and Alexander Halban (instructed by Kapoor & Co) for the defendant.
Judgment Dates: 25 September 2013


Company - Director - Duty - Payments out of company - Claimants being appointed joint liquidators of company - Defendant being director of company - Company engaging in number of projects with subsidiaries - Company having substantial liabilities and creditors - Defendant allowing company to make payments to associated companies - Liquidators seeking relief against defendant - Liquidators submitting defendant breaching duty as director - Whether defendant liable - .

The Case

Company Director. The defendant was the former director of a company to which the claimants were appointed joint liquidators. The Chancery Division held that the claimants had been entitled to relief against the defendant for sums paid out of the company in breach of his duties as a director, in circumstances where the company had substantial creditors and liabilities and without the defendant giving any consideration to the best interests of the company's creditors as a whole.

Practice Areas

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