Equitable directors in court

Former non-executive directors with Equitable Life go to the High Court this week to try to have the insurer's case against them thrown out.

Equitable claims the directors were negligent in their duty between 1993 and 2000.

It was during this period that the company decided to renege on the guaranteed annuity rates it had promised policyholders during better times.

The courts have since ruled that Equitable must honour those guaranteed annuities.

And it is now pursuing former directors for £3.2bn in compensation over the role they played in that decision.

Full hearing

The nine non-executives are asking the High Court to throw out the case before it reaches a full hearing next year.

They are expected to put the blame on Equitable's executive directors.

Former director Jennie Page with Tony Blair at the Dome

The non-execs include Jennie Page, former Millennium Dome boss, and Peter Davis, who was director-general of the National Lottery.

Equitable Life's argument is that the directors, who were all in place at different times, should have warned policyholders about the problems which led to its change of strategy.

They, in turn, are likely to contend that they acted reasonably on the information and advice given to them by the day-to-day management and from financial experts.

If the directors eventually lose, they will be able to pay only a fraction of the huge sums demanded.

But Stuart Bayliss, who advises policyholders, says useful information could become available as the non-execs defend their actions in open court.

The case could last up to four days.

Six former full-time executives are also being sued, as are the Equitable's former auditors, Ernst & Young.