Yukong Lines Ltd v Rendsburg Investments Corporation and Ors (The “Rialto”) - QBD (Com Ct)(Toulson J) - 23 September 1997

Shadow director of shipowning company unlawfully repudiating charterparty and at same time transferring company’s assets out of reach of creditors - Whether charterers entitled to sue shadow director

On 8 July 1995 the plaintiff chartered the vessel Rialto from the first defendant, Rendsburg Investments Corporation, of Liberia (“Rendsburg”) for three years. The third defendant, Mr Yamvrias, signed the charterparty as the director of Rendsburg’s brokers, Marcan Shipping (London) Ltd (“Marcan”). On 23 January 1996 Mr Yamvrias, in his capacity a director of Marcan, repudiated the charterparty. On the same day US$244,965.60 was transferred from Rendsburg’s account to the second defendant, Ladidi Investments Corporation, of Liberia (“Ladidi”), followed by a further transfer and the closing of Rendsburg’s account.