- Equitable compensation—broader than loss suffered (Interactive Technology Corporation v Ferster)
- What are the practical implications of the case?
- What was the background?
- What did the court decide?
- Case details
Commercial analysis: The Court of Appeal has confirmed that an award of equitable compensation against a director, in respect of an unauthorised remuneration drawn from a company, is not confined to actual loss suffered by a company. It is, therefore, not open to the director to argue that the unauthorised remuneration was equal to or less than the market value of the services provided by the director in consideration for the unauthorised remuneration. Written by Phillip Patterson, barrister at Hardwicke Chambers.
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