Bairstow v Queens Moat Houses plc explained

Bairstow v Queens Moat Houses Plc
Court:Court of Appeal of England and Wales
Full Name:Bairstow & Others v Queen's Moat Houses Plc
Citations:EWCA. Civ. 2001. 712.
Opinions:Robert Walker LJ
Keywords:Unlawful distribution

Bairstow v Queens Moat Houses Plc [2001] EWCA Civ 712 is a UK company law case concerning shares.

Facts

Counsel argued that directors should be liable for unlawful distributions even when the company was solvent.

Judgment

Robert Walker LJ held that the idea that investors were getting a windfall was wrong. However it may be possible that in suing the directors, an equitable contribution from shareholders could be payable. That argument was not, however, raised here.

Sedley LJ concurred.

See also