Directors have ‘duties’ even after liquidation (Mitchell v Al Jaber)

Table of contents

• What are the practical implications of this case?
• What was the background?
• What did the court decide?
• Case details

Article summary

Restructuring & Insolvency analysis: The Court of Appeal, when applying English case law to the liquidation of a BVI registered company, held that while a director’s duties mostly end on liquidation, similar fiduciary duties arise when a director is an intermeddler. The director is not at liberty to deal with the assets of the company which should be handed to the liquidator to deal with. In effect, a director has duties after liquidation which, while different to those in existence before liquidation, can nonetheless leave the director open to a claim by the liquidator if they cause any loss or damage to the company in liquidation. Written by Mark Sands, Head of Insolvency at Apex Litigation Finance Limited.