The court applied the principles outlined in the 1990 case of Guinness v Saunders rather than the more recent decision in Global v Hale in finding that the directors had acted in breach of their fiduciary duty to act in the best interest of the creditors. They misapplied the company’s assets for their own benefit and failed to exercise their powers for the proper purposes. It ruled that the directors were misfeasant for the purposes of section 212 of the Insolvency Act 1986 and jointly and severally liable to repay the entire sum together with interest.
Prior to its liquidation the company had two successful years of trading in the supply and installation of solar panels, having benefitted from a government incentive in place at the…
Read the full article at: https://www.out-law.com/en/articles/2018/january/directors-must-repay-sums-withdrawn-from-company-in-liquidation-rules-high-court/
