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barnes v addydirectors dutiescreditors interests
Westpac Banking Corporation v Bell Group Ltd (in liq)
Westpac Banking Corporation v The Bell Group Ltd (in liq) [No 3] [2012] WASCA 157; (2012) 44 WAR 1
Key Principle
Banks that obtained securities and waivers from a corporate group while knowing the directors were acting in breach of their fiduciary duties (in circumstances of insolvency) are liable as accessories under the second limb of Barnes v Addy for knowing assistance/knowing receipt, and the resulting constructive trust may take priority over the banks' securities.
Area of Law
insolvency
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