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The creditors’ claims (3)

28 March 2014 / Simon Duncan
Issue: 7600 / Categories: Features , Commercial
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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

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