Exploring permission to act under Company Directors Disqualification Act 1986, s 2—Re Liberty Holdings Unlimited

Exploring permission to act under Company Directors Disqualification Act 1986, s 2—Re Liberty Holdings Unlimited

How did the court approach an application for permission to act where a disqualification arose from section 2 of the Company Directors Disqualification Act 1986 (CDDA 1986)? Omar Ensaff, a barrister at No5 Chambers, explains that the court decided to approach the application for permission under CDDA1986, s 2 as they would approach any other application.

Original news

Re Liberty Holdings Unlimited; Re Copperidge Developments Ltd; Subnom Owen v Secretary of State for Business Inovation and Skills [2015] Lexis Citation 244, [2015] All ER (D) 119 (Oct)

The Companies Court allowed the applicant’s application for permission under CDDA1986, s 17, to be involved in the management of two companies, notwithstanding that he had at that time been subject to a disqualification order for a period of seven years for falsifying accounts. The court held that, in the exceptional circumstances of the case, permission would be granted.

What was the background to this case?

The applicant was subject to a seven year disqualification order arising out of CDDA1986, s 2 following his guilty plea to three counts of falsifying accounts. As well as the disqualification order that had been made against him, he had also been sentenced to three years’ imprisonment and he had, in addition, been subject to a £3,000,000 confiscation order. The background that gave rise to that disqualification, imprisonment and confiscation order was that while he was a director of a company, he had allowed or caused that company to supply eggs that were purportedly free range or organic, but in fact were eggs that came from caged hens.

What was the application that the Registrar was asked to rule upon?

The applicant sought the court’s permission, pursuant to CDDA1986, s 17, to be involved in the management of two companies (one of which was an unlimited company) as a project manager of each. The first

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About the author:

Stephen qualified as a solicitor in 2005 and joined the Restructuring and Insolvency team at Lexis®PSL in September 2014 from Shoosmiths LLP, where he was a senior associate in the restructuring and insolvency team.

Primarily focused on contentious and advisory corporate and personal insolvency work, Stephen’s experience includes acting for office-holders on a wide range of issues, including appointments, investigations and the recovery and realisation of assets (including antecedent transaction claims), and for creditors in respect of the impact on them of the insolvency of debtors and counterparties.