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Law Cases
Company Law Cases
Directors' Duties Cases

Fulham Football Club Ltd v Cabra Estates plc [1994] 1 BCLC 363

Country:
United Kingdom
By Oxbridge Law Team
Held

  • Football club had football ground on lease. In return for substantial payment, directors of club agreed not to oppose any future planning applications which owners of the ground might make.

  • Sought to get out of contract by alleging it was unlawful fetter of their duty to act in best interests of club in future.

Held

  • Performance of a contract is not breach of s.173 if director exercised independent judgment when entering into the contract

  • Thus provided Defendant believed contract was for benefit of company at time he entered it, cannot claim later on that contract stops him acting for benefit of company

  • Here, directors entered agreement which substantially benefitted company

    • Thus cannot be said that they improperly fettered their future discretion

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