The Chancery Division heard claims brought by the liquidators of a British Virgin Islands company for breach of duty, breach of trust and negligence both pre- and post-liquidation periods and for knowing receipt and unlawful means conspiracy. The claim concerned the alleged disposal of all the assets of the company in 2009 in return for shares in another BVI company and whether the directors had backdated the transfer from 2016 to 2009 so that the transfer was made before the company became insolvent in 2011. The court found that the share transfer was backdated and awarded equitable compensation of €67m. The court declined to award damages for conspiracy as they would be the same as those for equitable compensation. The court found that a Guernsey company which had received the shares was liable to account for them as a constructive trustee.
Mitchell and others v AI Jaber and others 2023 All ER (D) 07 (Mar). (24 February 2023)
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