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

Walkers—Muriel Marseille

Walkers—Muriel Marseille

Ashurst's Chief Risk Officer joins Walkers

Excello Law—John Osborne

Excello Law—John Osborne

Northern family lawyer John Osborne joins Excello

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

Trio of promotions announced at Kidderminster law firm mfg Solicitors

NEWS
A sole director can conspire with their own company for the purposes of the tort of unlawful means conspiracy, the High Court has ruled in a judgment with potentially wide implications for business disputes
The Court of Appeal has reinforced that domicile depends on intention rather than residence alone, in a significant post-Brexit ruling on cross-border financial remedy claims
The Chancery Division's long history comes to an end this autumn as it is reborn as the Business and Property Division, prompting questions over whether the shake-up is really necessary
The Financial Conduct Authority (FCA) continues to show that failing to disclose regulatory issues can attract harsher consequences than the original misconduct itself
Rejecting a generous settlement can prove an expensive mistake, as two recent high-profile cases demonstrate
back-to-top-scroll