- Fairness and clarity in director disqualification (Re Asset Land Investment plc)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Restructuring & Insolvency analysis: The Secretary of State brought disqualification proceedings against the directors of a company that had operated an unlawful land banking collective investment scheme. The company and several of its directors had already been subject to proceedings by the Financial Conduct Authority (FCA) for breach of sections 19 and 21 of the Financial Services and Markets Act 2000 (FSMA 2000). These proceedings concluded in the Supreme Court, with the decision as to the participation of the company and its directors in an unlawful collective investment scheme being upheld. Following the winding up of the company, the Secretary of State commenced disqualification proceedings against the directors. By trial all but the remaining respondent, Mr Lord, had given disqualification undertakings. The Secretary of State’s case was that as a director of a company found to have operated an unlawful collective investment scheme, Mr Lord was unfit to act as a director. The Secretary of State was however prevented from running the allegations against the director except on a narrow basis because of deficiencies in the way the case was put. Written by Daniel Lewis, barrister at Wilberforce Chambers.
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