A recent decision has helped to frame the tests articulated by the Supreme Court in Sequana.
The Supreme Courts landmark decision in Sequana[2022] UKSC 25.leaves many unanswered questions, and finding a common thread between the four quite separate judgments has proved challenging for practitioners and directors alike. The recent decision in Hunt v. Singh[2023] EWHC 1784 (Ch). required the court to interpret the subtly conflicting statements in Sequana on two critical issues:
- when the creditor duty arises, which obliges directors to have regard to the interests of creditors in discharging their fiduciary duties to the company; and
- the nature of the creditor duty if it has arisen.
Tax Avoidance Scheme Unravels
In Hunt v. Singh, the liqu…
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