The Weavering case is particularly interesting for the judge's comments about the minimum standards of attention and diligence that a court should be able to expect from fund directors. The directors of the collapsed Weavering Macro Fixed Income Fund Limited were found to have failed to perform their duties of supervision. It was held that, had such duties been correctly carried out, the circumstances which led to the collapse of the Fund might have been avoided. The Grand Court made an award of damages of US$111 million representing the minimum amount of the Fund's loss occasioned by irrecoverable redemption payments made by the Fund during the extended period of its trading on the basis of falsely inflated NAV calculations.
This white paper discusses the implications of this case and key issues to be considered by fund directors.