A company was declared bankrupt on the basis of an application filed by a creditor whose debts had not been repaid. At the same time, the former director of the debtor company was noticed in evading the transfer of inventories and documents relating to the activities of the company to the receiver in bankruptcy. As a result, the latter had questions and made requests to the government authorities and banks for information about director's activities.
The analysis of bank statements from the current accounts of the debtor company revealed a large number of questionable payment transactions made by the former director.
The receiver in bankruptcy filed a lawsuit seeking to recover damages from the former director.
Under what conditions can damages be recovered from the former director?