Equity rising? Commonwealth Oil & Gas Co Ltd v Baxter

Discusses the Inner House judgment in Commonwealth Oil & Gas Co Ltd v Baxter on whether a director had breached his fiduciary duty to the claimant company when he negotiated a commercial opportunity for another company in his capacity as its president and chief executive officer which allegedly might have been exploited by the claimant. Considers the appropriate test for determining if the director had faced a conflict of loyalties. Assesses whether the director's lack of executive functions left him without concomitant duties to the company. Examines whether the third party company was liable for knowing receipt of the benefit of the director's breach of duty.© 2011 Sweet & Maxwell