On an application for a disqualification order, the director against whom the order is to be made should file an affidavit before the date of the hearing. A disqualification order can have grave consequences and is a serious interference with the freedom of the individual. As to procedure: ‘The Secretary of State or the official receiver will not usually have first-hand knowledge of the matters on which the disqualification application is founded but, and this is important, a defendant to a disqualification application inevitably will have such knowledge. Many disqualification applications are not defended. When they are, the facts which are seriously in issue may be very limited. It would be absurd, because it would be pointless, for the affidavit evidence in chief always to consist exclusively of matters within the personal knowledge of the deponent.’ and ‘Frequently disqualification applications are based on a defendant’s conduct as a director over many months or even years. There is a measure of practical good sense in a procedure whereby the plaintiff has first to set out his case, with sufficient clarity and identification of the evidence being relied on for the defendant to know where he stands. Then the defendant puts in his evidence. The plaintiff can see what factual issues there are, and he can then take steps and incur expense in adducing where necessary first-hand evidence on these issues, before the hearing. In this way the genuine issues can be resolved properly and fairly in the interests of the defendant and in the public interest. This procedure does not prejudice a fair and just trial of the issues.’
Judges:
Sir Donald Nicholls V-C
Citations:
Times 04-May-1994, Ind Summary 09-May-1994, [1994] Ch 1
Statutes:
Company Directors Disqualification Act 1986
Jurisdiction:
England and Wales
Citing:
Appeal from – Re Rex Williams Leisure Plc (In Administration) ChD 1-Sep-1993
Directors facing disqualification proceedings to give evidence by affidavit. . .
Cited by:
Appealed to – Re Rex Williams Leisure Plc (In Administration) ChD 1-Sep-1993
Directors facing disqualification proceedings to give evidence by affidavit. . .
Cited – The Secretary of State for Trade and Industry v Swan and Othes ChD 22-Jul-2003
When commencing proceedings under the Act, the papers were defective. The secretary of state had failed to give appropriate notice, and thus prevented him from making representations as to the allegations. The allegations involved the manipulation . .
Lists of cited by and citing cases may be incomplete.
Company
Updated: 11 July 2022; Ref: scu.82148