HomeCase studiesSMEs, directors & shareholdersDirector servicesGetting a director disqualification claim dropped after issue of legal proceedings and recovering costs in full

Why the client needed our help

Our client was a director of a telecoms company and allegations were made that he was also a shadow director of a separate legal entity based out of the same premises as the telecoms company. Director disqualification proceedings were issued by the DTI against our client in respect of HMRC arrears in the separate legal entity. They sought to show that our client was the controlling mind of not only the telecoms company but also the separate legal entity which shared the same offices.

How we helped

We firstly dealt with the specific allegations on a pre-issue basis. Unfortunately, the Secretary of State did commence proceedings against our client. We therefore completed detailed affidavit evidence in response and this included not only an affidavit from our client but affidavits from all the employees of the telecoms company, all of whom indicated that our client was not in any way involved with the separate legal entity.

The outcome

After we filed our evidence, the Secretary of State agreed to drop their claim. Proceedings were dropped and our clients’ legal costs were paid in full. This enabled our client to continue with his current telecoms business interests and avoided all of the problems associated with possible disqualification against him. The net cost to our client of the action was nothing.

I was very impressed with the work undertaken by the team at FWJ. Their commercial approach combined with specialist knowledge and tactical expertise was pivotal in the claim being dropped and costs recovered in full.

The client

Key contacts

Stephen Downie

Stephen Downie

Partner

Carly Moore-Martin

Carly Moore-Martin

Senior Associate

Shevy Narendra

Shevy Narendra

Senior Associate

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