ABSTRACT
Re Duckwari plc [1999] CA C was a director of O Ltd and D plc. In 1989, O Ltd bought a property for development for £495,000, which at the time was a fair price. C arranged for O Ltd to sell the property to D plc, at cost, on such terms that would enable both companies to share equally the profits from any subsequent development. This was accepted by the board of D plc, but was not approved by D plc’s shareholders. After D plc had bought the property, there was a fall in the market and the property was eventually sold for £177,970. Proceedings were brought in relation to s 320 of the Companies Act 1985, D plc contending that it was entitled to the difference between the price paid for the property and the money received on its subsequent re-sale.
