Dear all,
List-members may be interested in
Borelli & ors v Ting v ors [2010] UKPC 21, in which the respondent, the former chairman and CEO of Akai Holdings Ltd (and who appears to have misappropriated the company's property on a grand scale, leading to its eventual collapse), refused to cooperate with and obstructed the appellant liquidators of Akai by,
inter alia, fraudulently procuring opposition to a proposed scheme of arrangement.
As this scheme was necessary for the liquidation, and as there was a tight deadline to work against, the appellants entered a settlement agreement with the respondent, under which the latter agreed to end his opposition in return for a compromise or waiver of all claims against him (and his associated companies).
The Privy Council held that the settlement agreement was invalid as it had been entered into under duress, and the Privy Council seems to emphasise the elements of "illegitimate pressure" and the lack of a reasonable or practicable alternative.
The Privy Council also appears to have flirted at [41] with a lack of consideration argument, although there was no reference to Williams v Roffey Bros, and no actual decision on this point.
Regards,
Colin