Much Ado About Nothing: Technical Breaches of Directors’ Disclosure Duties in Fairford Water Ski Club v Cohoon & Anor [2021] EWCA Civ 143 – Hardwicke Chambers

‘In Fairford Water Ski Club Ltd v Cohoon & Anor [2021] EWCA Civ 143, the Court of Appeal considered a highly technical breach of the duty imposed on company directors to disclose any interest in a contract or proposed contract entered into by their company. The decision considers several practical issues surrounding the duty to disclose, such as whether disclosure is effective only if given after the terms have been agreed and the board has considered whether these represent fair value; and whether disclosure at a first board meeting is effective for subsequent meetings. The case also highlights differences in the statutory frameworks applicable to the duty under the Companies Act 1985 and 2006.’

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Hardwicke Chambers, 11th May 2021