Keystone Healthcare Ltd and another v Parr and others

Company – Director. The claimant companies succeeded in some of their claims against the first defendant, among others, both in relation to his conduct while a director of the first claimant company (Keystone), and in relation to his post-termination conduct. The Chancery Division ruled, among other things, that the first defendant had breached his duty, as a fiduciary, to report his own wrongdoing to Keystone concerning payroll and invoice frauds committed against the company, with the result that the claimants had suffered loss. Accordingly, the first defendant was held to be liable in the sum of £650,612.04. The court further ruled, among other things, that the third defendant company (Medipro), in undertaking a competing business, and on the facts, was liable for dishonestly assisting the first defendant in relation to his breaches of fiduciary duty.

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