COMPANY LAW COMPANIES : DIRECTORS : FIDUCIARY DUTY : REPAYMENT OF SUMS TO COMPANY : EMBEZZLEMENT OF FUNDS
A former finance director had been in breach of his fiduciary duties in using company fund for personal gain and was liable to repay the sums to the claimant companies.
The claimant companies (X) alleged that the defendant (B) had breached fiduciary duties owed to X and sought substantial sums from him. While B had been employed by X as a finance director he had been responsible for the lending and borrowing of funds, had signing rights to various bank accounts, had been a trustee of a UK pension fund and was the company secretary. B had since retired. X argued that by virtue of the positions B held he owed X contractual and/or fiduciary duties that prohibited anyone in B’s position from helping himself to company funds.
HELD: from the evidence it was plain that B had over the years embezzled sums amounting to over £700,000. B was liable to repay the sums sought to X.
Judgment for claimants. ALENCO (HOLDINGS) LTD & ors v BATES (2005)
Ch D (Alan Steinfield QC) 20/6/2005