Company law - Transactions with company's own director
In Dickinson v NAL Realistaions (Staffordshire) Limited the lead director became a cropper! He effected transactions by the company in favour of himself
- at an undervalue
- without proper and independent resolution of the other directors:
- without independent valuations.
The transactions comprised:
- land sale and lease back at inflated rent
- purchase of company's own shares without full payment on transfer
- sale of a subsidiary for ?1.00
So what were the conflicts with law?
- breach of directors duties, including fiduciary
- breach of Companies Act 2006 s 171, s 172, s 174, s691, and
- breach of Insolvency Act 1986 s 423; s 238 also relevant.
What were the sanctions? Orders to restore property to the company and to pay compensation to company for losses.