Directors Duties In The Spotlight Once Again

Introduction

The collapse of Bernard Madoff's multi-billion dollar Ponzi scheme left ripples across the international investment world and resulted in a multitude of lawsuits around the globe. One of these cases is Madoff Securities International Limited v. Stephen Raven et al.,¹ a recent decision released by the High Court of Justice in the United Kingdom. In this case, the Court clarified the scope of a director's duty to act in what he or she believes in good faith to be in the interests of the company. The Court also provided important guidance on how directors are expected to comply with this duty in light of the practical commercial realities of their role; in particular, the need to work together with other directors.