Assessing the Principle of Directorial Oversight and Accountability Through the Lens of Re Barings plc (No 5) and Its Relevance to Kenyan Corporate Governance
The collapse of Barings Bank in 1995 remains one of the most significant corporate failures in modern financial history. While the immediate cause of the collapse was the unauthorized derivatives trading conducted by Nick Leeson, the legal significance of Re Barings plc (No 5) lies not in the misconduct of a rogue trader but in the failures of corporate governance that enabled such misconduct to persist undetected. The decision established an important principle of company law and corporate governance that directors may delegate functions, but they cannot delegate responsibility. The case therefore stands as a leading authority on the principle of directorial oversight and accountability.
