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ARTICLE · 15 AUGUST 2024

The BHS Saga: Stark Lessons For Company Directors

DMH Stallard LLP
DMH Stallard LLP
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DMH Stallard LLP

DMH Stallard LLP

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The BHS collapse highlighted critical lessons for company directors, emphasizing the importance of due diligence, adherence to fiduciary duties, avoiding conflicts of interest, robust corporate governance, employee welfare, and proactive insolvency risk management.

United KingdomMedia, Telecoms, IT, Entertainment

The collapse of BHS in 2016 sent shockwaves through the high street. The subsequent litigation has had far wider reaching implications for company directors, highlighting critical issues regarding their duties and the importance of corporate governance.

The liquidators of BHS subsequently sued three of its former Directors and, in June 2024, the High Court ordered two of them to pay at least £10.4 million and £8.1 million respectively by way of recompense, making it already one of the largest successful claims against directors to date.

There's been much commentary on the legal analysis on the case and when it enables claims against delinquent Directors – but what lessons can a responsible Director take away from it?

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