Company directors had had civil proceedings for disqualification suspended pending the outcome of criminal proceedings arising from the circumstances of the failure of their companies. They had variously suffered penalties including criminal disqualifications in those criminal proceedings, under section 2. They sought to argue that the continuation of the civil proceedings under section 6 would … Continue reading In Re Cedarwood Productions Ltd; In Re Inter City Print and Finishing Ltd; Secretary of State for Trade and Industry v Rayna and Another: CA 26 Jun 2001

The purpose of the jurisdiction created under the Act is to promote better management standards in companies. Citations: [1993] BCLC 796 Statutes: Company Directors Disqualification Act 1986 Jurisdiction: England and Wales Cited by: Cited – The Secretary of State for Trade and Industry v Michael Hamilton Amiss, Jonathan Andrew Chapman, Roger Rex Ingles ChD 20-Mar-2003 … Continue reading re Swift 736 Limited: 1993

Disqualifications under section 8 should be of similar length to those recommended in the Sevenoaks Stationers for disqualifications under section 6. Citations: [1991] 1 WLR 1070 Statutes: Company Directors Disqualification Act 1986 8 Jurisdiction: England and Wales Citing: Cited – In re Sevenoaks Stationers (Retail) Ltd CA 1990 The court gave guidelines for the periods … Continue reading In re Samuel Sherman Plc: 1991

A disqualified director sought leave under section 17 to act as a director or be concerned or take part in the management of 3 companies and was successful in respect of 1 company. Arden J looked at the statutory basis and observed that the purpose of the unfitness disqualification is protective rather than penal and … Continue reading Re Tech Textiles Ltd: ChD 1998

Referring to the procedure in disqualification proceedings of serving an affidavit, the court held: ‘That procedure, and, in particular, the mandatory requirement in r 6, emphasises the importance to the respondent of being able to ascertain with clarity from the evidence filed on behalf of the applicant what are the criticisms laid against him, and … Continue reading Re Sutton Glassworks Ltd: ChD 1996

Chadwick J said: ‘It would be preferable, for the future, if those preparing and swearing affidavits in support of applications under this Act were careful to distinguish between facts which they are able to establish by direct evidence, the inferences which they invite the court to draw from those facts, and the matters which are … Continue reading Re Pinemoor Ltd: ChD 1997

The affidavit filed in proceedings under the Act take a role similar to that of the pleadings in other cases. Judges: HH Judge Micklem Citations: [1994] BCC 226 Statutes: Company Directors Disqualification Act 1986 Jurisdiction: England and Wales Cited by: Cited – The Secretary of State for Trade and Industry v Swan and Othes ChD … Continue reading Re Circle Holidays International plc: ChD 1994

When considering the filing of additional evidence changing allegations made under the 1986 Act, the paramount requirement is that the director facing disqualification must know the charge he has to meet. As to the standard of misbehaviour required to found an order, Sir Nicolas Browne-Wilkinson VC said: ‘Ordinary commercial misjudgment is in itself not sufficient … Continue reading In re Lo-Line Electric Motors Ltd: 1988

The claimant had paid a dividend to its parent company. The claimant’s case was that the payment was in contravention of sections 39 and 43 of the Companies Act 1980, as there were no available profits at the time, and so were ultra vires the claimant. It sued the parent company and the two directors … Continue reading Precision Dippings Ltd v Precision Dippings Marketing Ltd: 1986

Agreed statement of facts must not allow ambiguity as to secondary inference. Citations: Times 01-Nov-1996 Statutes: Company Directors Disqualification Act 1985 Jurisdiction: England and Wales Company Updated: 08 April 2022; Ref: scu.82106

A failure to file his company’s accounts is a serious default, and is sufficient to warrant the disqualification of a company secretary from acting as a company director. The filing of accounts is a substantial protection for those trading with limited companies. Citations: Times 05-Jan-1993 Statutes: Company Directors Disqualification Act 1986, Companies Act 1985 Jurisdiction: … Continue reading In Re Pamstock Ltd: ChD 5 Jan 1993

Judges: Miles J Citations: [2020] EWHC 2778 (Ch) Links: Bailii Statutes: Company Directors Disqualification Act 1986 17(3) Jurisdiction: England and Wales Company Updated: 23 March 2022; Ref: scu.655198

Judges: Mr Eason Rajah QC (Sitting as a Judge of the High Court) Citations: [2021] EWHC 2463 (Ch) Links: Bailii Statutes: Company Directors Disqualification Act 1986 17 Jurisdiction: England and Wales Company Updated: 09 February 2022; Ref: scu.671318

The director appealed against a 12 year disqualification. The basis of the disqualification was unlawful trading to the detriment of creditors, and taking excess drawings. The Vice-Chancellor, Lord Justice Buxton, And, Lady Justice Arden [2004] BCC 581, [2002] 1 BCLC 119, [2000] 1 WLR 2230, [2001] EWCA Civ 1787 Bailii Company Directors Disqualification Act 1986 … Continue reading Official Receiver v Stern and Another: CA 20 Nov 2001

The Secretary sought disqualification of the defendants. The second defendant had not been a director of the company, but director of another company which in turn held a directorship in the defaulting company. Held: The claim failed: ‘i) As I have already pointed out the purposes of section 6 of the CDDA and section 214 … Continue reading Secretary of State for Trade and Industry v Hall and Nuttall: ChD 28 Jul 2006

The Secretary of State sought company director disqualification orders against the defendants saying they had been convicted of making false instruments. The Insolvency service had decided against such proceedings, and the Crown Court judge, when sentencing them had considered and rejected orders. The defendants now argued that the instant proceedings were an abuse of process. … Continue reading The Secretary of State for Business, Innovation and Skills v Weston and Another: ChD 5 Sep 2014

The claimant sought a disqualification after the defendants had been directors of a company mis-selling Structured Capital at Risk products. The FSA had reported that they had been negligent. Held: ‘I do not have to decide whether or not the defendants were negligent. The question is whether their risk ratings were so flawed that they … Continue reading Secretary of State for Business Innovation and Skills v Aaron and Others: ChD 10 Dec 2009

Robert Walker LJ said that the expression ‘de facto director’ had been in use for a long time, and commented on the failure to distinguish in pleadings between pleas that someone was a shadow or a de facto director. The two different labels were not necessarily mutually exclusive. He said: ‘However the two concepts do … Continue reading Re Kaytech International plc; Secretary of State for Trade and Industry v Kaczer and others: CA 1999

The directors appealed against disqualification orders made against them under the 1986 Act. Their company had become insolvent, owing substantial arrears of PAYE and NI contributions. The revenue had said that they had paid other creditors first. Held: When considering appeals to avoid disqualification, a court would be better guided by the use of the … Continue reading Cathie and Another v Secretary of State for Business, Innovation and Skills: CA 1 Jun 2012

The claimant had offered an undertaking not to act as a company director for a period of time, to avoid applications for his disqualification. He now sought leave to act. Held: The applicant had: ‘put forward ample evidence to justify a finding that he is skilled and experienced at marketing and sales and would be … Continue reading Harris v Secretary of State for Business, Innovation and Skills: ChD 9 Aug 2013

An application was made to disqualify as a company director a former director of Claims Direct Limited. He had been accused of several actions which might justify a disqualification. Held: The court found misconduct but delayed a decision on whether it was sufficient to found a disqualification. The court should look at such matters properly … Continue reading Secretary of State for Business Enterprise and Regulatory Reform v Sullman and Another: ChD 19 Dec 2008

renewed application for permission to appeal . .

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The lower court had dismissed a petition for a director disqualification because of the failure to comply with the ten day requirement in section 16.
Held: (Majority) The provisions of section 16 were directory only and not mandatory. . .

Deeks and Hinds were the directors of a construction company. They negotiated a lucrative construction contract with the Canadian Pacific Railway. During the negotiations, they decided to enter into the contract personally, on their own behalves, . .

The company was said to have paid dividends unlawfully, in that the directors who were the shareholders had paid themselves dividends knowing that the company had not earned enough to pay them.
Held: Where shareholders had knowledge of the . .

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An application for disqualification orders was made on the basis of the directors’ failure to pay tax.
Held: Neuberger J said: ‘I would accept the grave nature of an allegation of unfitness under section 6(1)(b) of the 1986 Act must be borne . .

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The ‘legitimate expectations’ of a party were a label for the ‘correlative right’ to which a relationship between company members may give rise when, on equitable principles, it would be regarded as unfair for a majority to exercise a power conferred upon them by the articles to the prejudice of another member. Depriving a shareholder … Continue reading In re Saul D Harrison and Sons plc: CA 1995