chapter  13
12 Pages

DIRECTORS’ DUTIES: REMEDIES AND RELIEFS AND DIRECTOR DISQUALIFICATION

Account of profits made as a result of breach of duty A director may be ordered to account to the company for any profits he has made as a result of the breach of duty. The principal object of an account of profits is to deter directors from breaching their duties and not to compensate the company for loss (United Pan-Europe Communications NV v Deutsche Bank AG [2000] 2 BCLC 461). Accordingly, the director may be made to account even if the company has suffered no loss, and even if the company could not have made the profit itself, as was the case in Regal (Hastings) Ltd v Gulliver [1967] 2 AC 134.