The Secretary of State sought the winding up of the company. Directors offered undertakings as to their future behaviour.
Held: The Court should be slow to accept such undertakings unless the Secretary consented. The company was solvent, but the basic trading model was not attractive, and allegations of fraud had been made. No great sum had gone to charity. These were the very directors whose behaviour had suggested the need for the action, and undertakings could properly be rejected.
Judges:
Vice-Chancellor, The Vice-Chancellor
Citations:
[2004] EWHC 523 (Ch), Times 19-Mar-2004, Gazette 01-Apr-2004, [2004] 1 WLR 1549
Links:
Statutes:
Insolvency Act 1986, Companies Act 1985 447, Charitable Institutions (Fund-Raising) Regulations 1994 7
Jurisdiction:
England and Wales
Citing:
Applied – Re Bamford Publishers Ltd ChD 2-Jun-1977
The Secretary of State sought the winding up of a company. The court considered the discretion to accept undertakings as to the company’s future conduct: ‘Quite clearly the Company has been engaged in a disreputable system of trading. The Company . .
Cited – Re Easy-Dial Ltd 16-Sep-2003
On an application for a winding up order, the court accepted undertakings on the basis of which the Secretary of State sought and was given leave to withdraw his petition. . .
Cited – Re Walter L Jacob Ltd CA 1989
Having authorised an enquiry under section 447, the Secretary of State presented a winding-up petition of the respondent, an authorised dealer in securities. The company had been obliged to cease trade by its regulatory body. The judge held that the . .
Cited – Re Vehicle Options Ltd 21-Feb-2002
The court accepted undertakings with regard to the conduct of a franchised vehicle-leasing broker. The Secretary of State consented to the order. . .
Cited – In Re Senator Hanseatische Verwaltungsgesellschaft Mbh and Another CA 30-Jul-1996
The Secretary of State had presented a winding up petition on public interest grounds against a company carrying on an illegal lottery.
Held: The court refused the application of the Secretary of State for the appointment of a provisional . .
Cited – In the Matter of Blackspur Group Plc; Secretary of State for Trade and Industry v Davies; Thomas; Thompson; Andrew CA 19-Nov-1997
The Secretary of State may perfectly properly refuse to accept offered undertakings and instead decide to prosecute company directors under the Act, even though though the terms offered were intended to give equivalent effect. The purpose of the . .
Cited by:
Cited – Bell Davies Trading Ltd and Another v Secretary of State for Trade and Industry CA 30-Jul-2004
The directors of the company had organised a scheme for imports from China which was thought to be an unlawful abuse of the import licensing scheme. When presneted with an application by the Secretary of State for the winding up of the company, the . .
Lists of cited by and citing cases may be incomplete.
Company, Insolvency
Updated: 01 October 2022; Ref: scu.194656