In the recent case of Secretary of State for Health (“NHS”) v Servier Laboratories Ltd (“Servier”), the Supreme Court considered whether in cases involving loss caused by unlawful means, the unlawful means must have affected a third party's freedom to deal with the claimant. This is known as “the dealing requirement”.
Despite the Covid-19 pandemic, 2020 was an incredible year for crypto assets. Largely driven by the increased demand from institutional investors, Bitcoin shattered its previous price records. However, its pseudonymous nature and the ease with which it allows users to instantly send funds anywhere in the world makes crypto assets appealing to criminals.
What happens when a director commits fraud by misappropriating company assets? Or what of the director who continues trading knowing that the company has no realistic prospect of paying its debts as and when they fall due? To whom does a director owe duties at that point and what recourse is there against that director? This article explores these questions.