Singapore | Directors' liability for increase in net deficiency from wrongful trading

In the recent English decision of Wright v Chappell [2024] EWHC 2166 (Ch), errant directors, who had breached their directors’ duties with respect to a company that had continued to trade while insolvent or bordering on insolvency, were assessed to be liable for the increase in net deficiency of the company’s assets caused by the breaches over the relevant time period. This manner of calculating compensation may be an additional string in an insolvency practitioner’s bow when handling asset recovery matters, particularly where a director’s breach has enabled the insolvent company to continue to trade. Directors Mohan Gopalan and Mitchell Yeo and Associate Ian Choo discuss the English decision in this update.
 
Read more here.