The company made a claim to recover the borrowing costs incurred to buy property in breach of s320 (no shareholder approval). The acquisition of the property had been unprofitable, and the company was held to be entitled to recover from the defendant directors the loss resulting form the acquisition.
Held: The indemnity given to a company by its directors in respect of the purchase of property from a director, did not extend beyond the losses actually suffered to the borrowing costs of the acquisition.
Citations:
Times 07-Jan-1999, Gazette 27-Jan-1999, [1998] EWCA Civ 1795, [1999] Ch 268
Links:
Statutes:
Jurisdiction:
England and Wales
Citing:
See also – Duckwari Plc v Offerventure Ltd and Another: In Re Duckwari Plc (no 2) CA 8-May-1998
A company director entering into an unapproved contract with his own company was liable to the company for the loss as at the time that loss was realised, not at the time of the breach. Where directors had entered into contracts with their company . .
Cited by:
See also – Duckwari Plc v Offerventure Ltd and Another: In Re Duckwari Plc (no 2) CA 8-May-1998
A company director entering into an unapproved contract with his own company was liable to the company for the loss as at the time that loss was realised, not at the time of the breach. Where directors had entered into contracts with their company . .
Cited – Murray v Leisureplay Plc QBD 5-Aug-2004
The claimant sought payment of three years’ salary after termination of his service contract. He said that an agreement had been made by the company to purchase a ‘financial institution’, which would trigger the additional payments. The defendants . .
Lists of cited by and citing cases may be incomplete.
Company
Updated: 30 May 2022; Ref: scu.145274