Manolete Partners PLC v Mohammed Jawed Karim & Ors

Manolete Partners PLC v Mohammed Jawed Karim & Ors

Directors breached fiduciary duties by misappropriating company assets for personal benefit, paying unlawful dividends and bonuses, and failing to account for payments. Payments to Mariam Karim were unconscionable and subject to tracing. Limitation does not bar claims due to deliberate concealment and fiduciary breaches. Manolete entitled to repayment and proprietary remedies.

Parties
Claimant: Manolete Partners PLC; First Defendant: Mohammed Jawed Karim; Second Defendant: Mohammed Basser Karim; Third Defendant: Mohammed Fahim Karim; Fourth Defendant: Mariam Karim; Fifth Defendant: Anna Racko Karim; Sixth Defendant: Richard Slade and Company Limited
Jurisdiction
England and Wales
Judgment Date
08 June 2024
Procedural Posture
Civil / Final Judgment
Outcome
Claim allowed in full against live Defendants; proprietary relief granted against Mariam Karim and Jawed Karim.
Legal Topics
Directors' Duties, Breach of Fiduciary Duty, Unlawful Dividends, Tracing, Limitation of Actions, Remedies for Breach of Duty
Company Law Insolvency Fiduciary Duties Directors' Duties Breach of Fiduciary Duty Unlawful Dividends Tracing Limitation of Actions +1 more

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Parties

Manolete Partners PLC

Claimant

Mohammed Jawed Karim

First Defendant

Mohammed Basser Karim

Second Defendant

Mohammed Fahim Karim

Third Defendant

Mariam Karim

Fourth Defendant

Anna Racko Karim

Fifth Defendant

Richard Slade and Company Limited

Sixth Defendant

Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 Whether directors breached fiduciary duties by misappropriating company assets
  2. 2 Whether dividends and bonuses were unlawfully paid
  3. 3 Whether payments to related parties were for proper purposes

Ratio Decidendi

Directors breached fiduciary duties by misappropriating company assets for personal benefit, paying unlawful dividends and bonuses, and failing to account for payments. Payments to Mariam Karim were unconscionable and subject to tracing. Limitation does not bar claims due to deliberate concealment and fiduciary breaches. Manolete entitled to repayment and proprietary remedies.

Court Disposition

Claim allowed in full against live Defendants; proprietary relief granted against Mariam Karim and Jawed Karim.

Orders

  • Directors to repay sums misappropriated from company, including unlawful dividends and bonuses.
  • Mariam Karim to repay £58,100 received improperly and unconscionably.