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Law Cases
Company Law Cases
Directors' Duties Cases

Re Duckwari [1999] Ch 253

Country:
United Kingdom
By Oxbridge Law Team
Held

  • Defendant was director of Company A and Duckwari.

  • Company A bought property for £500,000; Defendant offered to pass this property on to Duckwari in return for 50% of profits resulting from this development. Offer was accepted by Duckwari, but not approved by its members.

  • After Duckwari had purchased property, was crash in housing market and property was sold at a great loss (£175,000). Defendant was sued under old version of s.190.

Held

  • Defendant and the other directors of Duckwari were liable to indemnify Duckwari for whole of its loss

    • I.e. the entire difference between £500,000 and £175,000

    • Thus were liable even for the losses caused by crash in housing market

  • This because liability of Claimant is strict and is that of a trustee

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