Supreme Court Decision Gives Further Clarity On Claims By Distressed Companies Against Directors

• Author: Herbert Smith Freehills
• Law Firm: Herbert Smith Freehills
• Published date: 08 March 2023

Although not directly concerned with directors' liabilities, the recent Supreme Court judgment in Stanford International Bank Ltd v HSBC Bank PLC[2022] UKSC 34 (previously considered here) provides further clarity on the circumstances in which a distressed or insolvent company may seek to make claims against its directors.

The key aspects affecting directors' liabilities are that:

1. at least where unlawful preference rules are not engaged, loss to the company is a necessary element of the company's claims...