Law Cases > Company Law Cases > Directors' Duties Cases

Re Continental Assurance Co of London

[2007] 2 BCLC 287

Case summary last updated at 22/01/2020 19:18 by the Oxbridge Notes in-house law team.

Judgement for the case Re Continental Assurance Co of London

Insurance company suffered unexpected losses. Directors commissioned a report as to company’s solvency, and decided to continue trading on basis of report until after six months it became clear company was insolvent. Held:

Park J

· Directors were not liable for wrongful trading during six month period.

· Ceasing to trade and liquidating too soon can be “stigmatised as the coward’s way out”

Ø Thus would be wrong to judge directors based on hindsight

Have you seen Oxbridge Notes' best Company law study materials?

Our law notes have been a popular underground sensation for 10 years:

Written by Oxford & Cambridge prize-winning graduates
Includes copious academic commentary in summary form
Concise structure relating cases and statutes into an easy-to-remember whole
Covers all major cases for LLB exams
Satisfaction guaranteed refund policy
Recently updated

Company law Notes >>

Company law Notes