Airey v Cordell, [2006] EWHC 2728
Citation:Airey v Cordell, [2006] EWHC 2728
Rule of thumb: Fundamentally, how can sue a director? IF you get a report from an experienced independent director stating that in their experience that the custom would have been to take a different measure, and they have never seen another director take that measure, this can be a good start to making an arguable case.
Judgment:
‘the correct test for allowing the action to continue and for costs too is to be the independent board test... (which he understood to involve asking whether the decision is one) which a reasonable board could take’, Warren
Warning: This is not professional legal advice. This is not professional legal education advice. Please obtain professional guidance before embarking on any legal course of action. This is just an interpretation of a Judgment by persons of legal insight & varying levels of legal specialism, experience & expertise. Please read the Judgment yourself and form your own interpretation of it with professional assistance.