International Corporate Rescue
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Vol 15 (2018) - Issue 3
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Directors’ Duties in the Twilight Zone
Katharina Crinson, Senior Knowledge Lawyer, and Rachel Seeley, Solicitor, Freshfields Bruckhaus Deringer LLP, London, UKSynopsis
In Ball (Liquidator of PV Solar Solutions Ltd), PV Solar Solutions Ltd (in CVL) v Paul James Hughes, Martyn Paul Ware [2017] EWHC 3228 (Ch) the High Court held that credit entries made against two directors’ loan accounts at a time when creditors were being left unpaid were in breach of the directors’ fiduciary duty to act in the best interest of the company. The directors were ordered pursuant to s. 212 of the Insolvency Act 1986 to repay the sums with compound interest.
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