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.

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