- William Kanaan
Directors' fiduciary duties
In a recent High Court ruling it has been confirmed that a director's fiduciary duties survive a company's entry into administration or voluntary liquidation.
The case related to a successful application by a liquidator in respect of company property sold at undervalue and payments made after the company entered administration.
The decision is confirmation that, while a director's powers may end on insolvency, fiduciary duties do not.
Re Systems Building Services Group Limited (In Liquidation) EWHC 54 (Ch)