In the Matter of ED Games Ltd sub nom (i) French (ii) Mummery v Cipolletta


In an action brought by the liguidators of a comoany against a director pursuant to the Insolvency act 1986 s212, it was sufficiently clear from the points of claim that was being alleged was that losses were suffered by the company during a period when it traded using money that should have been paid to the Crown. Whilst the liquidators could face difficulties in proving causation and in identifying and quantifying the preccise losses that flowed from the director's alleged breach of duty, it could not be said that the liquidator's claim had no reasonable prospects of succeeding.