SEGENHOE LTD v AKINS & ORS

[2002] Lloyd's Rep PN 435

THE SUPREME COURT OF NEW SOUTH WALES (COMMERCIAL DIVISION)

Before Mr Justice Giles

Accountants - Auditors - Negligence - Negligent under-provision for taxation and consequent overstatement of profits - Dividend paid by company out of capital - Measure of loss - Whether company had suffered loss - Whether receipt by shareholders of dividend paid out of capital a bar to company recovering that payment from auditors - Mitigation of loss - Whether company should have mitigated loss by suing shareholders to recover overpayment.