Case: directors’ general duties survive insolvency

The High Court has held in Re Systems Building Services Group Limited (in liquidation) [2020] EWHC 54 (Ch) that a director’s general duties survive the insolvency of the relevant company.

Directors’ duties

It is well understood that all company directors are subject to various statutory and fiduciary duties. These duties arise by virtue of the director’s relationship with the company.

A director is an agent of the company, with power to act and take decisions which affect the company’s assets and interests. This means the director is in a relationship of trust and confidence with the company and it is that relationship which gives rise to the director’s duties to the company.

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