CMS Dolphin Ltd v Simonet [2001] 2 BCLC 704.

Facts: Simonet left a company after falling out with his co-founder of the agency and established a rival agency and attracted clients from his former employer.

Issue: Was Simonet in breach of his fiduciary duties as a director in diverting business opportunities from the first advertising agency to his new agency?

Held: Lawrence Collins J upheld Simonet’s liability for diverting a corporate opportunity and so made him liable to account as a constructive trustee for the profits that had been earned from this activity. Therefore, diverting a business opportunity away from the company will constitute misuse of that company’s property in itself.

Leave a Reply

Your email address will not be published. Required fields are marked *

Free Registration introduction text Free Registration introduction text Free Registration introduction text

Our membership includes

Click on icons for previews
Notes icon
Notes
Essays icon
Essays
Tutorial Videos icon
Tutorial Videos
Quizzes icon
Quizzes
Study/Exam Tips icon
Study/Exam Tips
Interactive Learning Platform icon
Interactive Learning Platform
Quiz preview
Interactive Learning PLatform preview