Shepherds Investments Ltd v Walters [2006] EWHC 836
Judgement for the case Shepherds Investments Ltd v Walters
Table Of Contents
Directors of a company set up a competing company whilst they were still directors, and the later resigned their directorships.
Former company sued for breach of fiduciary duty.
Held
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A director who intends to resign to start competing business must declare this intention as soon as it becomes ‘irrevocable’
And that other members of board who know of this directors’ intention are also under duty of disclosure
This clear from Item Software [2004]
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Thus directors were under duty to disclose their intention to set up competing business
As they did not, liable for account of profits
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