‘Imagine a company has been dishonestly asset-stripped by one of its directors. The assets have gone into his own pocket. The company is wound up. The shareholders and creditors have little hope of recovering much from it. The obvious next step is to pursue the director. But the shareholders cannot recover the loss in value of their shareholding against him; that claim is barred by the rule against reflective loss. Is a claim by an unsecured creditor who is not a shareholder similarly barred? In Garcia v Marex Financial Limited [2018] EWCA Civ 1468, the Court of Appeal held that it was.’
Henderson Chambers, 6th December 2018
Source: www.hendersonchambers.co.uk