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Appeal—Directors’ disqualification, CDDA 1986—legal test for trading to the detriment of creditors—principles governing disqualification period (Official Receiver v Obaigbena)

Published on: 24 June 2022
Published by: LexisNexis
  • Appeal—Directors’ disqualification, CDDA 1986—legal test for trading to the detriment of creditors—principles governing disqualification period (Official Receiver v Obaigbena)
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Article summary

Restructuring & Insolvency analysis: The court dismissed the director’s appeal against an order disqualifying him for a period of seven years pursuant to section 6 of the Company Directors Disqualification Act 1986 (CDDA 1986). Mr Justice Fancourt rejected the appellant’s argument that the trial judge had applied the wrong legal test in that while she found that the directors had caused the company to trade to the detriment of creditors when there was no reasonable prospect of creditors being paid or of the company avoiding insolvent liquidation, she had not made any finding that the director ought to have so concluded. Written by Tiran Nersessian, barrister at 4 Stone Buildings, Lincoln’s Inn. or take a trial to read the full analysis.

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