Ball (liquidator of PV Solar Solutions Ltd) and another v Hughes and another

Company – Insolvency. The respondent directors, by effecting three credits against their directors' loan accounts with the second applicant company, had acted in breach of their fiduciary duty to act in the best interests of the creditors of the company, contrary to s 172 of the Companies Act 2006 (CA 2006). The Chancery Division so held on an application by the company's liquidator. The court further ruled that the directors had misapplied the company's assets for their own benefit and had failed to exercise their powers for proper purposes, contrary to CA 2006 s 171, and were, accordingly, misfeasant for the purposes of s 212 of the Insolvency Act 1986. The directors were ordered, jointly and severally, to repay the sum of £758,020 to the company, together with interest.

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