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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

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