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Shepherds Investments Ltd v Walters

[2006] EWHC 836

Case summary last updated at 22/01/2020 18:21 by the Oxbridge Notes in-house law team.

Judgement for the case Shepherds Investments Ltd v Walters

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:
 
·       A director who intends to resign to start competing business must declare this intention as soon as it becomes ‘irrevocable’
Ø  And that other members of board who know of this directors’ intention are also under duty of disclosure
·       This clear from Item Software [2004]
·       Thus directors were under duty to disclose their intention to set up competing business
Ø  As they did not, liable for account of profits

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