Biscoe v Milner [2021] EWHC 763 (Ch)

Court: High Court

Facts: Liquidators sued directors for wrongful trading, debating whether proof of a direct causal link between breach of duty and losses was necessary.

Issue: Is direct causation between breach of duty and resulting losses required to establish wrongful trading?

Held: Director held liable. The court ruled that direct causation was not required, but a connection between breach and increased financial deficiency was sufficient.

Key Judicial Statement: The court clarified, "Section 214 of the Insolvency Act 1986 does not require proof of direct causation between breach of duties and losses."

💡 Leveluplaw: Directors can be held liable for wrongful trading even without proving direct causation, provided there is a connection between the breach and increased financial deficiency.