Forfeiture of an LLP Member's Profit Share

October 27, 2016

A recent English Court decision confirms that members of LLPs who breach their fiduciary duties are at risk of having their remuneration (including that received by way of profit share) forfeited. This is in addition to having to pay damages.

The significance of this principle, confirmed by the recent High Court decision of Jeremy Hosking v Marathon Asset Management LLP, is well demonstrated by the facts of the case where over £10m of profit share was forfeited while the compensatory damages awarded were just under £1.5m. This decision will have ramifications in other areas too, as the forfeiture remedy is potentially available not just in LLP disputes but in any case involving fiduciaries.

Read "Forfeiture of an LLP Member's Profit Share".