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GHLM Trading Vs Maroo: Director’s Loan Accounts and Void Contracts

In the case of GHLM Trading Limited -v- Maroo and others [2012] EWHC 61 (Ch) the High Court considered claims brought by a company against its directors and found that the burden of proof in relation to credit entries in a director’s loan account and in relation to expenses said to have been incurred on the company’s behalf was on the director. The Court also considered and made a finding that where a director caused his company to enter into a contract in his own interests and contrary to the interests of the company, its shareholders or creditors, and the counterparty had notice of that, the contract was void. Further details can be found in our briefing note:

Litigation Dispute Resolution Briefing Note GHLM Trading v Maroo (May 2012)

If you require advice in relation to disputes concerning the management of companies or the actions of directors, please contact Marie-Louise King, a Partner in Druces LLP’s Commercial Litigation and Dispute Resolution team.

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