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Split (legal) personalities?

09 September 2022 / Dr Mike Wilkinson
Issue: 7993 / Categories: Features , Commercial
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Corporate agents beware: Dr Mike Wilkinson dissects the mistaken belief that individuals running a company are shielded from personal liability for company wrongdoing
  • Those running a company often claim—wrongly—that they cannot be sued personally for their role in any wrongdoing and that any third party dealing with the company can only sue the company itself for the harm they have suffered.
  • While those running a company cannot be sued on a company’s contract, nor expected to give up property belonging to the company (unless the corporate veil is lifted), after the Supreme Court decision in Sevilleja v Marex Financial Ltd there is now no reason in principle why such persons cannot be sued for any wrongdoing they have committed or commissioned as a joint tortfeasor.

Persons dealing with a company often suffer losses at the hands of those running a company. They may wish to sue such persons individually, rather than suing the company itself—especially when the company is insolvent. All too often when such situations arise, misunderstandings abound, and third parties

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NEWS
Limited liability partnerships (LLPs) are reportedly in the firing line in Chancellor Rachel Reeves upcoming Autumn budget
The landmark Supreme Court’s decision in Johnson v FirstRand Bank Ltd—along with Rukhadze v Recovery Partners—redefine fiduciary duties in commercial fraud. Writing in NLJ this week, Mary Young of Kingsley Napley analyses the implications of the rulings
Barristers Ben Keith of 5 St Andrew’s Hill and Rhys Davies of Temple Garden Chambers use the arrest of Simon Leviev—the so-called Tinder Swindler—to explore the realities of Interpol red notices, in this week's NLJ
Mazur v Charles Russell Speechlys [2025] has upended assumptions about who may conduct litigation, warn Kevin Latham and Fraser Barnstaple of Kings Chambers in this week's NLJ. But is it as catastrophic as first feared?
Lord Sales has been appointed to become the Deputy President of the Supreme Court after Lord Hodge retires at the end of the year
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