The collapse of British Home Stores and the subsequent High
Court action against its directors serves as a stark reminder of
the potential risks for company officers deemed to have breached
their company duties.
The former high street chain went out of business in 2016 after
running out of money.
Two former directors defending the subsequent Court action were
held to be jointly and severely personally liable and ordered to
pay £110 million to creditors.
One director was held to be innocent of dishonesty with the
Court finding that he was “out of his depth” and unable
to prevent detrimental decisions. However, the Court made it clear
that it would not be able to exercise leniency as this could
encourage others to make…
