Fund Judgment Brings Gibraltar Director's Duties Into Focus

Introduction

Corporate governance is an important live issue worldwide particularly in the alternative fund management space, fuelled both by scandals (for example Madoff and Weavering) and tightening regulation. The role of the Gibraltar fund director came under the microscope last week when the Supreme Court of Gibraltar ("Court") found that directors of a failed investment fund had breached their duties as directors. The judgment contains important commentary, although the implications for well-advised investment funds with competent and diligent directors are limited. Nevertheless, all directors should revisit their practices to ensure that they remain consistent with key corporate governance principles.