Your Cart

Sevilleja v Marex Financial Ltd [2020]

Sevilleja v Marex Financial Ltd [2020] UKSC 31 was a significant case concerning company law and specifically addressed the application of the rule against reflective loss. This rule, which prevents shareholders from claiming losses that merely reflect the company's losses, was scrutinised in this decision to determine if it also barred creditors from making similar claims against third parties that have wronged the company.

The case arose when creditors sought to claim against a third party who had stripped assets from the company, thereby raising the question of whether their claims were precluded because the company was the proper plaintiff under the rule in Foss v Harbottle. The Supreme Court unanimously decided that the rule against reflective loss did not apply to creditors, allowing their claims to proceed. However, the main focus of the judgment was on refining the rule against reflective loss itself, leading to a split decision where the majority of the judges opted for reform rather than abolishment.

The rule against reflective loss has traditionally stated that the proper claimant for a wrong done to a company is the company itself. Shareholders, therefore, cannot claim for losses which are a reflection of a loss to the company, such as a diminution in the value of shares or failure to receive dividends. This principle was reevaluated in the context of whether it should extend beyond shareholders to other parties like creditors.

Significantly, the court affirmed that the rule should remain but only apply to shareholders. They clarified that the rule does not extend to creditors, thereby narrowing its application. This decision marked a critical development in company law, offering clearer boundaries for when the rule against reflective loss applies, especially in the complex landscape of modern financial and corporate transactions. The judgment's refinement of this rule has implications for shareholders and creditors alike, ensuring that the latter can pursue claims independently of the company's right to sue, which is particularly relevant in situations where companies are asset-stripped or otherwise financially manipulated by third parties.

Check out our high-performance Company Law notes now.

Subscribe to UOL Case Bank for more exclusive content and case summaries.

Trusted by thousands of law students worldwide

Where are our students from?

Yale University

Council of Europe

Baker Mckenzie 

University of Chicago

Columbia University

New York University

University of Michigan 


University College London (UCL)

London School of Economics (LSE)

King’s College London (KCL)

University of London

University of Manchester

University of Zurich

University of York

Brandeis University

University of Exeter

University of Sheffield

Boston University

University of Washington

University of Leeds

University of Law

Royal Holloway, University of London 

Birkbeck, University of London

SOAS, University of London

University of Kent

University of Hull

Queen’s University Belfast

Toronto Metropolitan University

Hong Kong University of Science and Technology

University of Buckingham

Your perfect companion for open-book and closed-book exams

Diagrams and Charts

Our carefully designed diagrams and charts will guide you through complex legal issues.

Clear and Succinct Definitions

Key concepts are concisely defined to help you understand legal topics quickly.

Statutory Provisions

Statutory provisions are provided side by side with legal concepts to help you swiftly locate the relevant legislation.

Case Summaries

We have summarised important cases for you so that you don't need to read long and boring cases.

Rules and Exceptions

Rules and exceptions are clearly listed so that you know when a rule applies and when it doesn't.


Legal terms and key concepts are explained at the beginning of each chapter to help you learn efficiently.

Case Law

Case law is provided side by side with legal concepts so that you know how legal principles and precedents were established.

Law Essay Guide

You will learn essential law exam skills and essay writing techniques that are not taught in class.

Problem Question Guide

We will show you how to answer problem questions step by step to achieve first-class results.

Structured Explanations

Complex legal concepts are broken down into concise and digestible bullet point explanations.

Legal Research

You will learn legal research techniques with our study guide and become a proficient legal researcher.


All essential concepts, principles, and case law are included so that you can answer exam questions quickly.