Powers to remunerate directors of Jersey companies
In a helpful judgment, the Jersey Court of Appeal has upheld the decision of the Royal Court in Pirrwitz v AI Airports International Ltd and PI Power International Ltd  JRC 017. The case raised questions regarding the remuneration of directors and in particular the scope of provisions in articles of association under which directors may be remunerated. An important point highlighted by the decision is that directors have no entitlement to remuneration out of company funds unless this is set out in the company’s articles of association or approved by the company’s members (the members being the shareholders in the case of a company having shares).
This briefing considers the decision in relation to issues raised regarding the remuneration of directors. The judgment is also important in clarifying the duty of a director under Article 74(1)(a) of the Companies (Jersey) Law 1991 to ‘act honestly and in good faith with a view to the best interests of the company’.
That aspect of the case is considered in a separate briefing…
If you are registered and logged in to the site, click on the link below to read the rest of the Mourant Ozannes briefing. If not, please register or sign in with your details below.
News from Mourant Ozannes
Briefings from Mourant Ozannes
Jersey Court of Appeal confirms rights of non-trustee fiduciaries to an indemnity out of the trust fund
On appeal from the Royal Court, the Jersey Court of Appeal held that a fiduciary in relation to a trust had an identical right of indemnity in equity out of the trust fund as a trustee.
The interpleader proceedings in Guernsey are dealing with substantial assets claimed to be the proceeds of a fraud alleged against Nikolai Battoo and the BC Capital Group.