Law digests: 5 August 2022

Company

Offical Receiver v Obaigbena [2022] EWHC 1399 (Ch), [2022] All ER (D) 63 (Jul)

The Chancery Division dismissed the appeal of the appellant from a decision of the deputy insolvency and companies court which disqualified the appellant from being involved in the management of a limited company. The appellant argued that (i) the judge had applied the wrong legal test by failing to consider and decide whether the appellant had known or ought to had known that there was no reasonable prospect of creditors being paid or of the company avoiding insolvent liquidation; and (ii) that the judge erred in disqualifying the appellant for a period of seven years. The court held, among other things, that the judge did not err in law by failing to apply a ‘legal test’. The court had not considered that that legal test was required by s 6 of the Company Directors Disqualification Act 1986. Further, although a period of seven years was at the upper limit of what could be a reasonable exercise of discretion