The Collapse of Weavering Capital – lessons for Directors and Fund Service Providers
Jul 06 2012
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The latest judgment in the Weavering saga hit directors with damages of US$450 million. A claim for €380 million against the fund's Irish administrators is being pursued.
Bedell hosted a seminar in Jersey on Thursday 5 July 2012, attended by over 150 delegates, which reviewed the facts of the Weavering collapse and examined the lessons for directors, fund administrators and other fund service providers.
The seminar was chaired by Martin Paul, Head of Investment Funds and Private Equity at Bedell Cristin, and included expert speakers Barnaby Stueck, a litigation Partner from leading international law firm Jones Day, who acted for the liquidators of Weavering Capital (UK) Limited against its former directors and employees, Senior Associate Edward Drummond from Bedell Cristin's litigation practice, and Bruce Horwood and Tony Shiplee from the Jersey Financial Services Commission.
The seminar explored the nature and causes of the Weavering failure, focusing on the role of directors, on corporate governance, and on effective delegation and monitoring in the typical offshore fund model. The speakers offered real life examples and practical advice on steps service providers can take to manage risks.
Martin Paul commented, "Weavering is an extreme case, but the judgments contain valuable lessons which are relevant for fund structuring and when advising fund service providers on their operational frameworks and the management of risk. The Weavering case is a big red flag for fund service providers, and is prompting reviews of how they do business."
To view the final judgment in the Weavering case please click here
. For further information on this subject, please contact Martin Paul
or Edward Drummond