Carlyle Capital Corp’s (CCC) collapse led a lengthy legal battle, covered in The NED in 2017. Now Simon Mortimer QC, in a lengthy article in South Square Digest, argues that the case has sparked a much needed debate on directors’ common law fiduciary duties. In particular, where do directors’ duties lie in common law fund jurisdictions?

Simon Mortimer’s conclusion is that ‘The Carlyle case seems to be the first time that the court has been invited to adopt a rationality test when deciding whether directors had complied with their duty of loyalty.