Extrasure Travel Insurance Ltd v Scattergood [2002] EWHC 3093 (Ch) (22 July 2002)

Extrasure Travel Insurance Ltd v Scattergood [2002] EWHC 3093 (Ch) (22 July 2002)

The court held that the directors had acted for an improper purpose and in breach of their fiduciary duties, rendering the transaction voidable at the instance of the company.

Citation
[2002] EWHC 3093 (Ch)
Parties
Claimant: Extrasure Travel Insurance Ltd; Defendant: Scattergood
Jurisdiction
England and Wales
Judgment Date
22 July 2002
Procedural Posture
Civil / Judgment
Outcome
claim allowed
Legal Topics
Directors' Duties, Breach of Fiduciary Duty, Corporate Governance
Company Law Directors' Duties Breach of Fiduciary Duty Corporate Governance

Case Brief

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Parties

Extrasure Travel Insurance Ltd

Claimant

Scattergood

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether the directors acted in breach of their fiduciary duties to the company
  2. 2 Whether the transaction in question was for a proper purpose

Ratio Decidendi

The court held that the directors had acted for an improper purpose and in breach of their fiduciary duties, rendering the transaction voidable at the instance of the company.

Court Disposition

claim allowed

Orders

  • The transaction is set aside as voidable.
  • Directors to account for any benefit received.