Directors Disqualification - Case Studies

The following are recent cases of Director Disqualification work undertaken by Francis Wilks & Jones LLP:-

Case Study 1

On 16th December 2002, Mr Justice Lloyd, sitting in the Chancery Division in the High Court of Justice, gave a ground breaking decision in the case of IN THE MATTER OF AITCH HOLDINGS LTD & ORS (2002).

In that case, FWJ acted for a chairman of a property development company with a multi million pound turnover. FWJ firstly negotiated a reduction in his period of disqualification as offered by the DTI by the use of the "Carecraft" Procedure.

FWJ then applied for leave under section 17 of the Company Directors Disqualification Act ("CDDA") for the Chairman to remain a director of 17 separate companies. Despite the high number of companies involved in the application, Mr. Justice Lloyd granted leave, thereby ensuring the survival of the entire business. It remains the highest number of companies for which leave has been granted in one application. FWJ has since obtained leave for a further 5 companies for the same Chairman since the date of the original order.

Case Study 2

FWJ have recently acted for a chairman of a worldwide business with an estimated turnover of $600 million. He was faced with almost certain disqualification by the DTI due to serious crown deficiencies following the liquidation of a company of which he was a director. FWJ therefore requested a meeting with the Chief Examiner of the Insolvency Service to explain the particular circumstances of the company's failure and the many mitigating factors in our client's favour. The result was that the DTI decided not to issue proceedings thus saving the costs of a major restructuring of the business, the expense of a section 17 application and the inevitable resignation by the Chairman from his banking interests.

Case Study 3

FWJ recently acted for a director of a major IT company. He was involved in the failure of a previous company and the DTI issued proceedings against him as a result of crown debt deficiencies. FWJ successfully negotiated an undertaking with the DTI at the outset of the case thereby saving him substantial legal costs had the matter become more protracted.

FWJ then successfully made two applications on his behalf. One was for leave under section 17 of the CDDA to continue acting as a director of the new company. The other was for leave under section 216 of the Insolvency Act 1986 as it had been noticed that the new company for which he was working had a similar trading style as the old company which went into liquidation, thus exposing him to possible personal liability for the company's debts. Despite a tight time table, FWJ successfully applied for both applications without the need for him to resign as a director of the existing company following his undertaking given to the DTI.

Case Study 4

FWJ recently acted for a director in a complex disqualification claim. FWJ drafted detailed affidavits in response to the DTI and made preparations to go to trial on the matter. Due to the tough stance taken in the proceedings, FWJ were successful in negotiating a reduced undertaking the day before trial.

As can be seen from the examples above, Francis Wilks and Jones has tremendous experience in the area of director disqualification and the successful application for leave following a disqualification order. The correct legal advice at the outset of your claim can make the difference between the survival of your business and reputation. Francis Wilks and Jones can provide this advice.

For more information contact Andy Wilks on 0845 402 5466 or email us at info@franciswilksandjones.co.uk