 |
Management Error |
Trading While Insolvent |
Going into liquidation after failing to clear its debts, it was found that the applicant company was not reaching its break-even point for a couple of months, and was therefore insolvent. The court found that the company had incurred debts during this period which the senior management should have had reasonable cause to expect that the company could not repay. As a result, senior management was found liable for the sum of its debts, $122,301.00
Covered?
YES |
Minority Shareholder |
A former minority shareholder of a textile manufacturing company sold his shares to the major shareholder without knowing about the impending sale of some company assets. The information on this sale was available to the board of Directors and majority shareholder. The minority shareholder sued the Board, alleging that he had been induced to sell his shares too cheaply by not being made aware of this information. The court held that the directors had breached their fiduciary duty towards the minority shareholder and ordered the directors to pay $223,680.
Covered?
YES | |
|
|
