The Supreme Court has unanimously dismissed the appeal in Saxon Woods Investments Limited v Francesco Costa, holding that the good-faith requirement under section 172 of the Companies Act 2006 (CA 2006) requires a director not only to form their business judgment in good faith but also to act in good faith towards the company when implementing it. A director who covertly pursues a strategy contrary to that resolved upon by the board as a whole may breach CA 2006, s 172. The court further held that, where a fiduciary duty of loyalty exists, the duty itself, rather than the objective dishonesty test in Ivey v Genting, provides the relevant analytical framework. The Court of Appeal’s unconditional buy-out order under CA 2006, s 996 was upheld. David Lascelles, barrister at Littleton Chambers, provides commentary on the judgment.