21/12/2012

Global Energy Horizons Corp v Gray

The claimant company alleged that the Defendant had breached his fiduciary duties owed to it by taking personal advantage of what was said to be a corporate opportunity. The opportunity was to obtain a financial interests in a special purpose vehicle (“SPV”) that was formed to exploit ultrasound technology designed to increase production of inaccessible oil and gas reserves particularly in mature and underperforming wells. It was not contended by the company that the Defendant was a director. There, having been an order for a split trial as regards liability and quantum, the Court had before it essentially three issues that needed to be determined. First, did the Defendant owe the company any fiduciary duties? Secondly, if fiduciary duties were owed had they been breached? Thirdly, had the company given its fully informed consent or otherwise acquiesced in the conduct of the Defendant, in particular the Defendant taking an interest in and acting on behalf of an investment fund which ultimately acquired the entirety of the shares in the SPV. The court found I favour of the company in respect of each issue.

Member of Chambers: Stephen Atherton QC acted for the Defendant (instructed by Holman Fenwick Willan LLP)