Oxbridge Notes uses cookies for login, tax evidence, digital piracy prevention, business intelligence, and advertising purposes, as explained in our privacy policy.

Technical settings

Someone recently bought our

students are currently browsing our notes.

X

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

Re Continental Assurance Co of London crops up in following areas of law