Defendant was director of Company A and Duckwari.
Company A bought property for £500,000; Defendant offered to pass this property on to Duckwari in return for 50% of profits resulting from this development. Offer was accepted by Duckwari, but not approved by its members.
After Duckwari had purchased property, was crash in housing market and property was sold at a great loss (£175,000). Defendant was sued under old version of s.190.
Defendant and the other directors of Duckwari were liable to indemnify Duckwari for whole of its loss
I.e. the entire difference between £500,000 and £175,000
Thus were liable even for the losses caused by crash in housing market
This because liability of Claimant is strict and is that of a trustee
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Company law | Directors' Duties 2 Cases (7 pages) |