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This of course doesn't mean the end of such claims, it just changes the balance of risk and reward on both sides. The defendant, usually the director, faces a slightly reduced liability if they lose or settle and the estate consequently has a smaller pot to defray costs from. The unsecured creditors just lose all ways which is why this decision makes no sense. Fewer claims will certainly be brought on the margins of risk/return and the dividends will certainly be reduced on the claims that are brought.

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