Remedies for breach of fiduciary duty - forfeiture of an LLP member's profit share
Individuals who hold positions of trust will generally be fiduciaries. This includes directors, senior managers within businesses and partners in professional partnerships. If such individuals breach their fiduciary duties, they risk having their remuneration (potentially including profit share) forfeited. This is in addition to having to pay damages.
The significance of this principle, confirmed by the decision in 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. While this decision was in the context of an LLP member, it will have ramifications in other areas too, as the remedy of forfeiture is potentially available in any case involving a fiduciary.
The full article is available in the January - March 2017 edition of Corporate Disputes.