F&GP Meeting November 2017

misapplication. In the illustrative facts considered here, it is likely that the director would have the requisite knowledge.

B26. If, however, the director acted honestly and reasonably, the court has discretion to relieve the director of liability if it concludes that in all the circumstances he ought fairly to be excused under s1167 of the Companies Act 2006. Even in the illustrative facts addressed here, and assuming that the director acted honestly, it is difficult to give clear guidance as to whether a director would be granted relief as this will depend on all the facts. However, it is thought that the director would have a very strong argument that he had acted reasonably. Claims by the company against the directors would be time-barred after the lapse of six years from when the cause of action accrued (absent fraud).

TECH 16/14BL REVISED

11