Tuesday, 1 October 2013

UK: England and Wales: Directors' duties, creditors and section 172 of the Companies Act 2006

Judgment was given last week by Mr John Randall QC, sitting as a deputy judge of the High Court, in Hellard & Anor (Liquidators of HLC Environmental Projects Ltd) v Carvalho [2013] EWHC 2876 (Ch). In misfeasance proceedings, brought by a liquidator under section 212 of the Insolvency Act 1986, a company director was found to have breached section 171 and section 172 of the Companies Act 2006. The decision is noteworthy because of the judge's discussion of the operation of section 172, and the extent to which the subjective duty it imposes is subject to qualification.

No comments: