The claimant, liquidator of ODL, sought relief in a declaration that the defendants, former directors of the company, were guilty of misfeasance and breach of duty by causing, procuring or permitting ODL to commence a development when they knew or ought to have known that it was speculative, inadequately funded, and bound to fail. The legal foundation of this head of claim was that they each owed (i) a fiduciary duty to ODL to act in what they honestly believed was in its best interests; (ii) a duty to ODL at common law to exercise reasonable skill and care in acting as directors, and (iii) ‘a duty, at a time when ODL was insolvent or insolvency was reasonably foreseeable, to have regard to the interests of creditors’.
Judges:
Norris J
Citations:
[2011] EWHC 257 (Ch)
Links:
Jurisdiction:
England and Wales
Insolvency, Company
Updated: 02 June 2022; Ref: scu.429657