BRITISH VIRGIN ISLANDS Trends and Developments Contributed by: Matthew Freeman and Stuart Rau, Maples Group
ence to other creditors, the company would suffer a pecuniary loss equivalent to the financial loss suffered by the general body of creditors. Therefore, a director or shadow director may not be able to avoid reimburs - ing the company, even in circumstances where the payment in question was balance sheet-neutral. If this were not the case, directors would be encouraged to breach their creditor duty on the false premise that a transaction that is balance sheet-neutral causes a company no financial loss.
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