In its recent landmark decision in Sevilleja v Marex Financial Ltd¹, the UK Supreme Court has unanimously held that the so-called ‘reflective loss’ principle, barring claims against third parties which reflect loss suffered by a company, will only preclude claims by shareholders, and does not extend to claims by other creditors. The decision has provided welcome clarity regarding the scope of the ‘reflective loss’ principle and will have significant implications for company law.
Despite the reinstatement of a ‘bright line’ rule, the decision raises some further questions to which the courts are likely to return in the coming years.