UK: DIRECTORS’ DUTIES SURVIVE COMPANY INSOLVENCY, RULES HIGH COURT

An article from Out-Law on 28 February said that the High Court has ruled that a director’s fiduciary duties survive a company’s entry into administration or voluntary liquidation.  In the case in question, a liquidator was successful in his application in respect of company property sold at undervalue and payments made after the company entered administration.  The decision confirms that, while a director’s powers cease on insolvency, their fiduciary duties remain – even when not exercising those powers themselves.

https://www.pinsentmasons.com/out-law/legal-updates/directors-duties-survive-company-insolvency

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Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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