Source: All England Reporter
Publisher Citation: [2008] All ER (D) 188 (Jan)
Neutral Citation: [2008] EWHC 64 (Ch)
Court: Chancery Division
Judge:

Patten J
Representation Michael Booth QC and Mark Harper (instructed by Pannone LLP ) for the first defendant.
  The second defendant did not appear and was not represented.
  Stephen Davies QC and Nigel Bird (instructed by Cobbetts LLP, Manchester) for the Official Receiver.
Judgment Dates: 24 January 2008

Catchwords

Companies - Director - Disqualification - Application for disqualification order - Whether defendants acted incompetently - Whether conduct of defendants rendered them unfit to be concerned in management of company.

The Case

In an application by the Official Receiver, pursuant to s6 of the for disqualification orders to be made against two defendants who were former directors of a company, it was held that, applying settled law, the defendants had failed in their duty to ensure that the company was run in accordance with its articles and the requirements of that Act. The second defendant had been content to allow her deceased husband and the first defendant to run the company and to take substantial dividends from it regardless of how and whether they should have been paid.An abdication of responsibility of that kind did amount to unfitness to be a director. Accordingly, the second defendant would be disqualified for a period of four years. A period of disqualification would be decided in the case of the first defendant once he, and those acting for him, had had the opportunity of considering the judgment of the court.

Practice Areas

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