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A sole director can conspire with their own company for the purposes of the tort of unlawful means conspiracy, the High Court has ruled in a judgment with potentially wide implications for business disputes
Writing in NLJ this week, Simon Carroll of B P Collins examines Lux Films Ltd v Fowler, where a director who allegedly diverted business opportunities through his own company failed to rely on an 'alter ego' defence.
The court held that the corporate form cannot be used 'as a shield to defeat liability' where it forms part of the wrongful conduct. Carroll says the decision provides long-awaited clarity following uncertainty in earlier authorities and is likely to make it easier for claimants to pursue both directors and companies acting in concert.
The judgment could also increase the scope for corporate assets to be targeted where directors misuse closely controlled companies.
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