Burden Holdings (UK) Ltd (in liquidation) and another v Fielding and another

Company – Insolvency. A director was only liable if he had known or ought reasonably to have known that the relevant distribution was a misapplication. In so clarifying, the Chancery Division went on to make a number of findings in relation to the transactions sanctioned by directors of a company that subsequently became insolvent. The liquidators of the company had failed to show that the transactions had been entered into in breach of fiduciary duties or in order to defraud creditors.