This complied with limits on dividends in the Companies Act 2006 part 23, and common law rules on capital maintenance.
AWA had been solvent, but had also potential liability for pollution damages, and an uncertain insurance portfolio.
The Supreme Court held the directors were not under a duty to consider creditors when they paid the dividend, or act in their interests at the time.
In principle, the duty could apply to the decision to pay an otherwise lawful dividend payment.
However, the duty was not engaged on the facts because AWA's insolvency was not even probable at the time of the dividend payment.