Dispute over breach of duty by a company's directors at Quindell

The case of Watchstone Group plc v Quob Park Estate Limited shows that a breach of duty by a director will not automatically result in any prejudice to shareholders or any loss to the company

The case, Watchstone Group plc v Quob Park Estate Limited [2017] EWHC 2621 (Ch), involved a dispute over breach of duty at Quindell (now known as Watchstone plc) which held 19% of the shares in OS3, a company with which it also had an exclusive distribution agreement. OS3 was reliant on loans made to it by Quindell up until 2014 and was in financial distress. New directors were appointed to OS3 in late 2014 who wanted it to operate separately from Quindell.

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