Shepherds Investments Ltd v Walters [2006] EWHC 836
Country:
United Kingdom
Reviewed By Oxbridge Law Team
Updated 2024-01-04 07:05:32 UTC
Directors of a company set up a competing company whilst they were still directors, and the later resigned their directorships.
Former company sued for breach of fiduciary duty.
Held
-
A director who intends to resign to start competing business must declare this intention as soon as it becomes ‘irrevocable’
And that other members of board who know of this directors’ intention are also under duty of disclosure
This clear from Item Software [2004]
-
Thus directors were under duty to disclose their intention to set up competing business
As they did not, liable for account of profits
RELATED CASES
Any comments or edits about this case?
Get in touch Similar cases
Plus Group v Pyke
Defendant was a director of a company (Claimant), in which him and another person owned 50% of shares. After dispute with other director, Defendant was excluded from running of Claimant. A former cli...
Coleman v Myers
Defendant was director of family company. Defendant made offer to buy shares of other members of company, and invoked statutory power of compulsory purchase. Claimant, other shareholders, brought act...
Mashonaland
Is no automatic breach of fiduciary duty where a director is involved in business of another company which competes with company of which he is director. Plus Group v Pyke
CMS Dolphin Ltd v Simonet
Two people formed advertising agency. Defendant resigned as director and set up rival business, which proceeded to poach all of former company’s staff and clients. However by time of court case, new...
Item Software v Fassihi
Defendant was director of Claimant. Claimant was in a distribution agreement with Isograph. When Claimant tried to renegotiate its terms with Isograph on more favourable terms, Defendant approached...
Related free notes samples
Ambitious and intelligent students
choose Oxbridge Notes.
- Customer Support
- Sellers FAQ
- Contact Us
- Privacy Policy
- Terms and Conditions
©2024 Oxbridge Notes. All right reserved.