This article takes a look at a recent case, Byers and others v Chen Nanning [2021] United Kingdom Privy Council (UKPC) 4, in which the Privy Council of the United Kingdom examined the duties of a director who worked with a company based in the British Virgin Islands that had become insolvent.
Specifically, the company brought a claim against the director for a breach of her fiduciary duties and the case examines what her obligations as a director were and how she should have conducted herself when the company faced insolvency. Ultimately, the Privy Council found that she did have a fiduciary duty to prevent certain payments from being made because the company was insolvent.
Authors: Jeremy Lightfoot, Litigation Partner, Xia Li, Counsel, and Catie Wang, Associate, Carey Olsen