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.
Despite that, if Hearsey had no reliable view on DGA's financial position, it was not responsible to pay himself large sums of money.
Sir Martin Nourse (with whom Potter LJ concurred) upheld the decision of the High Court, after Mr Hearsey appealed.
Miss Giret has relied on a further passage in that judgment, where Templeman LJ warned against the dangers of hindsight in cases such as this.
The test is as I have stated it, namely whether the payment complained of was, in the particular circumstances, grossly negligent and made without a due regard for the finances of the company.
I would dismiss this application accordingly.A Belcher, ‘Something distinctly not of this character’: how Knightian uncertainty is relevant to corporate governance' (2008) 28(1) Legal Studies 46, 55