The liquidator brought proceedings against Services that alleged negligence in relation to the provision of financial information to the company.

Although the case is remembered primarily for the statements with respect to company law (referred to in both arguments and the judgment as the "company law point"), the actual decision that the Court of Appeal was required to make related to a procedural point on leave to serve proceedings out of the jurisdiction under RSC Order 11 (now repealed).

Lord Justice Lawton was content to dismiss the appeal and refuse to leave serve out on this basis alone,[1] but went on to consider the "company law point".

That point was not addressed at all by the Court of Appeal, even by May LJ, who was prepared to accept that the directors might be properly liable in the assumed facts.

If that statute been in force at the relevant time, the "company law point" would likely not have arisen, as the liquidator could then have brought proceedings against the directors in his own name for wrongful trading.