The article first appeared in the Autumn 2024 edition of Recovery and is reproduced with the permission of R3, the association of business recovery professionals, and Klarents Media.
In the recent case of Kendall v Ball [2024] EWHC 746, the administrators of two companies – Sherwood Oak Holdings Ltd (Holdings) and its subsidiary, Sherwood Oak Homes Ltd (Homes) – sought a declaration that certain land was held on trust for the companies by its former directors.
The case provides a useful illustration of how proprietary remedies can be available in response to a breach of duty by a director even where the breach does not involve the misappropriation of pre‑existing corporate assets. The judgment also includes observations by ICC Judge Greenwood as to the appropriate procedure to use when seeking to resolve a complex dispute concerning the beneficial ownership of property.
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