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Lexi Holdings Plc (In Administration) V Luqman |
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Lexi Holdings Plc (In Administration) V Luqman [2009] EWCA Civ 117 – two sisters who had breached their fiduciary and common law duties of care to a company by their total inactivity while directors were liable to the company for their brother's dishonest misappropriation of funds, even though they had no real involvement in the company. They knew their brother had been convicted of dishonesty offences in the past and they ought to have known that his business dealings required convincing explanation, without which they ought to have notified the company auditors and the other directors.
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