Re Continental Assurance Co of London [2007] 2 BCLC 287
Country:
United Kingdom
Reviewed By Oxbridge Law Team
Updated 2024-01-04 07:05:54 UTC
Insurance company suffered unexpected losses.
Directors commissioned a report as to company’s solvency, and decided to continue trading on basis of report until after six months it became clear company was insolvent.
Park J
Directors were not liable for wrongful trading during six month period.
-
Ceasing to trade and liquidating too soon can be “stigmatised as the coward’s way out”
Thus would be wrong to judge directors based on hindsight
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