header-logo header-logo

28 March 2014 / Simon Duncan
Issue: 7600 / Categories: Features , Commercial
printer mail-detail

The creditors’ claims (3)

web_duncan

Simon Duncan continues to explore who has the right to sue former directors under s 15(1) of the Company Directors Disqualification Act 1986

Section 15(1) of the Company Directors Disqualification Act 1986 (CDDA 1986) imposes personal liability for the relevant debts of the company on a disqualified director where he has been involved in the management of the company. However, s 15(1) is silent as to who may bring such a claim. The case law holds that such a right vests by statute in a creditor, not a liquidator see Re Prestige Grinding Limited [2005] EWHC 3076 (Ch), [2006] 1 BCLC 440 (and “The creditors’ claims” 162 NLJ 7530, p 1175).

Prestige is also authority for the proposition that the liquidator has a right to claim a contribution from the disqualified director where the general law allows. However, if the s 15(1) claim could be pursued by a liquidator, it is said this would set up a right of contribution from the disqualified director against the company in liquidation

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Weightmans—Jason Slatcher

Weightmans—Jason Slatcher

Weightmans appoint new Chief Technology Officer

Mishcon de Reya—trainees

Mishcon de Reya—trainees

Mishcon de Reya announces trainee retention rate of 86%

Sackers—Charlotte Adams & Fraser Sutton

Sackers—Charlotte Adams & Fraser Sutton

Sackers welcomes two new Graduate Solicitor Apprentices

NEWS
LexisNexis is delighted to announce the launch of the LexisNexis Legal Awards 2027, celebrating outstanding achievement, innovation and impact across the legal profession
The Legal Services Board (LSB) is to take further enforcement action against the Solicitors Regulation Authority (SRA), setting additional performance targets and ‘intensifying’ its oversight, it has said
Regulators missed several opportunities to intervene in PM Law Group before it collapsed, an independent review by City firm Jenner & Block has found
An employer’s vicarious liability for the alleged torts of an employee cannot be transferred by TUPE, the Court of Appeal has confirmed
Tiered fees of up to £1,500 for Legal Ombudsman (LeO) cases could leave firms with little option but to pay out, lawyers have warned
back-to-top-scroll