In Re A Company No 004803 of 1996: ChD 2 Dec 1996

T was the company’s bookkeeper. He was also a director but with only a small shareholding. The company fell into difficulties. He recommended economies to the other directors which were not accepted, but then he stayed on in office. The court had disqualified the other directors but not him. The Secretary of State appealed.
Held: The appeal failed. The judge had properly allowed for the relevant factors, including that if his recommendations had been accepted the insolvency might well have been avoided, and that he stood to gain only a limited amount by continuing trading. The judge had found that he had not continued solely to ensure contination of his director’s fees. There was no reason to interfere with his decision.


hadwick J


Times 02-Dec-1996


Directors Disqualification Act 1986 6(1)(b)


Updated: 08 April 2022; Ref: scu.81645