p. 29814. Directors’ liabilities for breach of duty
- Brenda HanniganBrenda HanniganProfessor of Corporate Law University of Southampton
Abstract
This chapter focuses on the extent of a director’s civil liability for breach of fiduciary duty and the liability of third parties involved in some way in that breach of duty. The discussion considers liability for misapplying trust assets and the recovery of secret profits, commissions, and bribes. The chapter addresses the extent of the liability to reinstate the trust assets, to account for profits made, and to pay equitable compensation for loss caused by the breach of duty. There is also an account of the liability of third parties in dishonest assistance and knowing receipt. The chapter considers potential mitigations for directors in the form of equitable allowances, the scope for limitation defences, the role of indemnity provisions and insurance cover, and the possibility of applying to the court for relief.