Judith Hardy

The Privy Council, the highest court of appeal for litigants in British colonies, is to be asked to rule on the nature and standard of skill, care and expertise which the law requires of directors and officers of Bermuda-based companies.The appeal by Focus Insurance Company liquidators could affect every corporation registered here and may ultimately produce a landmark decision in the development of Bermuda's company law.However, the Privy Council application relies on liquidators David Lines and Peter Mitchell first obtaining leave to appeal a Court of Appeal judgment handed down November 25.

Six new defendants who have been added to a suit against the former directors and officers of Bermuda-based Focus Insurance Ltd are not being accused of willful negligence or breach of fiduciary duty - the central allegations in the civil complaint now being brought by Focus' liquidators David Lines and Peter Mitchell.