- Supreme Court rules on application of Limitation Act to directors (Burnden Holdings (UK) v Fielding and another)
- What are the practical implications of the decision?
- What was the background?
- What did the Supreme Court decide?
Dispute Resolution analysis: The Supreme Court has held that section 21(1)(b) of the Limitation Act 1980 (LA 1980) applied to company directors who (it was assumed) had acted in breach of their fiduciary duties. It emphasised that company directors should be considered ‘fiduciary stewards’ and, as a result, should a director benefit from a suspect transaction, the property can be regarded as having been ‘converted’ to their use for the purposes of LA 1980, s 21(1)(b). The action by Burden Holdings (UK) Ltd against the directors was therefore not time-barred. Matthew Parfitt, of Erskine Chambers, examines the Supreme Court’s decision and considers its practical implications.
Sign in or take a trial to read the full analysis.
To continue reading this news article, as well as thousands of others like it, sign in to LexisPSL or register for a free trial