High Court
Nicholas Stewart QC, for the High Court Chancery Division gave judgment on 15 February 2001. He allowed Bednash's claim in part.
In 1991 and 1992, because the company had been successful, and Mr Hearsey had adequately carried out his duties, it could not be said that pay or pension contributions were excessive. That was because there was no significant risk to DGA's creditors.
However, Hearsey's remuneration in following years was objectionable. There was a lack of clear evidence about Hearsey's actions. Despite that, if Hearsey had no reliable view on DGA's financial position, it was not responsible to pay himself large sums of money. Alternatively, if Hearsey had had a reliable view of DGA's finances, paying himself large sums of money would have also been irresponsible, because there had been a substantial risk to DGA's creditors.
Read more about this topic: Bednash V Hearsey
Famous quotes containing the words high and/or court:
“If I must choose which I would elevate
The people or the already lofty mountains,
I’d elevate the already lofty mountains.
The only fault I find with old New Hampshire
Is that her mountains aren’t quite high enough.”
—Robert Frost (1874–1963)
“In the court of the movie Owner, none criticized, none doubted. And none dared speak of art. In the Owner’s mind art was a synonym for bankruptcy.... The movie Owners are the only troupe in the history of entertainment that has never been seduced by the adventure of the entertainment world.”
—Ben Hecht (1893–1964)