Judgment was given yesterday by His Honour Judge Hodge QC (sitting as a judge of the High Court) in Finch (UK) Plc v Finch [2015] EWHC 2430 (Ch). The case concerned an application by a company's liquidators against its former directors and provides a warning to directors about their duties, the need to actively discharge those duties and to seek advice. In rejecting any opportunity for the directors to obtain relief from liability under section 1157 of the Companies Act 2006, Judge Hodge endorsed the position of Mr Justice Briggs in Lexi Holdings Plc v Luqman [2007] EWHC 2652 (Ch) at [224]: "Complete inactivity as a director is by definition unreasonable".
Friday 14 August 2015
UK: England and Wales: "Complete inactivity as a director is by definition unreasonable"
Judgment was given yesterday by His Honour Judge Hodge QC (sitting as a judge of the High Court) in Finch (UK) Plc v Finch [2015] EWHC 2430 (Ch). The case concerned an application by a company's liquidators against its former directors and provides a warning to directors about their duties, the need to actively discharge those duties and to seek advice. In rejecting any opportunity for the directors to obtain relief from liability under section 1157 of the Companies Act 2006, Judge Hodge endorsed the position of Mr Justice Briggs in Lexi Holdings Plc v Luqman [2007] EWHC 2652 (Ch) at [224]: "Complete inactivity as a director is by definition unreasonable".
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