Personal liability and disqualification of company directors:
Gespeichert in:
1. Verfasser: | |
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Format: | Buch |
Sprache: | English |
Veröffentlicht: |
Oxford [u.a.]
Hart
1999
|
Schlagworte: | |
Online-Zugang: | Inhaltsverzeichnis |
Beschreibung: | XXV, 235 S. |
ISBN: | 1841130753 |
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Datensatz im Suchindex
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adam_text | CONTENTS
Foreword xi
Preface xiii
Table of Cases xv
Table of Statutes xxi
Table of Statutory Instruments xxv
PART I: PERSONAL LIABILITY OF COMPANY DIRECTORS 1
CHAPTER 1: INTRODUCTION 3
1.1 Directors of insolvent companies 3
1.1.1 Identifying the characteristics of a company director 3
1.2 Identifying an insolvent company 6
1.3 The duties owed to creditors by directors of insolvent companies 7
1.3.1 Fiduciary duties 7
1.3.2 The conflict of interest rule 8
1.3.3 Duty of care 9
1.3.4 Directors duties in respect of insolvent companies 10
1.4 The general presumption against a director s personal liability for
the debts and other liabilities of an insolvent company 13
1.5 The liability of a director for personal undertakings 16
1.5.1 Personal liability in contract 16
1.5.2 Personal liability for pre incorporation contracts 17
1.5.3 Personal liability in tort 17
CHAPTER 2: MISFEASANCE PROCEEDINGS 23
2.1 Introduction 23
2.2 Section 212 of the Insolvency Act 1986 26
2.3 Claims based upon negligent conduct 27
2.4 Ratification 29
2.5 The section 727 defence 31
2.6 Set off claims 33
2.7 The extent and nature of a director s liability 35
v
CONTENTS
2.8 The distribution of the proceeds recovered in misfeasance
proceedings 36
2.9 The overlap between section 212 and section 214 37
CHAPTER 3: FRAUDULENT TRADING 39
3.1 Introduction 39
3.2 The historical development of the prohibition against fraudulent
trading 39
3.3 The protection provided by the fraudulent trading provisions 42
3.4 Establishing whether a person participated in the fraudulent
trading activities of a company 44
3.4.1 The liability of a holding company 46
3.5 Identifying fraudulent conduct 48
3.5.1 The type of business activity caught by the fraudulent
trading provisions 49
3.6 Establishing an intention to defraud 50
3.6.1 Dishonesty 50
3.6.2 Ascertaining a person s intention to defraud 52
3.6.3 Other considerations 53
3.7 The nature and extent of the liability 54
CHAPTER 4: WRONGFUL TRADING 57
4.1 Introduction 57
4.1.1 The Cork Report 57
4.1.2 The White Paper 60
4.2 Section 214 of the Insolvency Act 1986 61
4.3 Conduct giving rise to an action under section 214 63
4.4 Establishing liability — the reasonable diligent person test 64
4.5 The every step defence (section 214(3)) 74
4.5.1 The applicability of the section 727 defence 77
4.6 Applications under section 214 78
4.7 Persons who may incur liability under section 214 79
4.8 The beneficiaries of a contribution order 81
4.9 The extent of a director s liability under section 214 83
4.10 Financing an application under section 214 84
4.10.1 The ability of a third party to fund a section 214 action 86
4.11 A concurrent action under section 212 and section 214 of the
Insolvency Act 1986 91
4.12 Evidential problems in commencing an action under section 214 92
vi
CONTENTS 4.12.1 Establishing the date on which the alleged wrongful
trading first took place 92
A.12.2 Limitation periods 93
4.12.3 Striking out an action for want of prosecution 95
4.13 Section 214 — a failure or a success? 95
CHAPTER 5: THE PHOENIX SYNDROME (SECTIONS 216 217
OF THE INSOLVENCY ACT 1986) 99
5.1 Introduction 99
5.2 Reform 99
5.3 Sections 216 and 217 of the Insolvency Act 1986 101
5.3.1 The prohibited mischief 102
5.4 Establishing a person s liability under section 216 104
5.4.1 Corporate name 105
5.5 Dispensations from the incursion of liability under section 216 106
5.6 The exceptions to section 216 as prescribed by rules 4.228, 4.229
and 4.230 of the Insolvency Rules 1986 106
5.6.1 Rule 4.228 of the Insolvency Rules 1986 106
5.6.2 Rule 4.229 of the Insolvency Rules 1986 107
5.6.3 Rule 4.230 of the Insolvency Rules 1986 107
5.7 The court s discretionary power to grant leave 108
5.7.1 An examination of the judicial methods to determine a
leave application 112
5.8 Establishing a person s liability under section 217 113
5.8.1 The beneficiaries of a section 217 order 114
CHAPTER 6: SECTION 349(4) OF THE COMPANIES ACT 1985 117
6.1 Introduction 117
6.2 Section 349(4) of the Companies Act 1985 117
6.3 Exceptions to the application of section 349(4) 121
PART II: DISQUALIFICATION OF COMPANY DIRECTORS 129
General introduction 131
CHAPTER 7: THE COMPANY DIRECTORS
DISQUALIFICATION ACT 1986:
THE HISTORICAL BACKGROUND AND
A GENERAL OVERVIEW OF THE ACT 133
7.1 The historical background 133
vii
CONTENTS 7.2 An overview of the CDDA 1986 135
7.2.1 Disqualification following the collapse of a corporate
enterprise 135
7.2.2 The power to impose a disqualification order 135
7.2.3 The court s discretionary power to impose a
disqualification order 137
7.2.4 The consequences attached to a breach of a
disqualification order 138
7.2.5 The register of disqualification orders 139
7.3 Disqualification for general misconduct under sections 2 5 of
the CDDA 1986 139
7.3.1 Introduction 139
7.3.2 Disqualification following the conviction of an indictable
offence (section 2 CDDA 1986) 140
7.3.3 Persistent breach of the companies legislation
(section 3 CDDA 1986) 141
7.3.4 Disqualification for fraudulent conduct (section 4 CDDA
1986) 143
7.3.5 Persistent breaches of the companies legislation (summary
jurisdiction under section 5 CDDA 1986) 143
7.4 Other types of disqualification 144
7.4.1 Disqualification following a DTI investigation
(section 8 CDDA 1986) 144
7.4.2 Disqualification for fraudulent/wrongful trading
(section 10 CDDA 1986) 145
7.4.3 Disqualification of undischarged bankrupts
(section 11 CDDA 1986) 145
7.4.4 Disqualification resulting from a failure to comply with
payment under a county court administration order
(section 12 CDDA 1986) 146
CHAPTER 8: DISQUALIFICATION FOR UNFIT CONDUCT IN
THE MANAGEMENT OF AN INSOLVENT
COMPANY (SECTION 6 CDDA 1986) 147
8.1 Introduction 147
8.2 Section 6 of the CDDA 1986 148
8.3 Factors which are relevant to a section 6 application 149
8.3.1 An insolvent company 149
8.3.2 Conduct in relation to other companies 150
8.3.3 Defining the actions of a director 153
8.3.4 The shadow director 158
viil
CONTENTS 8.4 Conduct of an unfit nature 159
8.5 Conduct typically relevant to disqualification 166
8.5.1 The persistent failure to comply with a statutory
provision(s) 167
8.5.2 A breach of fiduciary duty 168
8.5.3 Reckless/negligent conduct which exceeds mere business
folly 169
8.5.4 Commercial incompetence 171
8.5.5 Crown debts 176
8.6 Conduct falling outside the ambit of section 6 178
8.7 Determining the length of the disqualification period 180
8.7.1 The court s power to increase a disqualification period 182
8.7.2 Overturning a finding that a director s conduct failed to
justify the imposition of a disqualification order 183
8.8 Mitigation 185
8.8.1 Conduct in the course of disqualification proceedings 185
8.8.2 The age of the director 186
8.8.3 The state of health of a director 187
8.8.4 The loss of a director s personal wealth 187
8.8.5 Reliance on professional advice 188
8.8.6 A director s success in the management of another
company 189
8.9 An application for leave to act (section 17 CDDA 1986) 189
CHAPTER 9: PROCEDURAL AND EVIDENTIAL MATTERS
PERTINENT TO THE CDDA 1986 195
9.1 Introduction 195
9.2 Proceedings under section 6 195
9.2.1 Commencement of proceedings 195
9.2.2 The summons 197
9.2.3 Period of notice 199
9.2.4 The evidence in support of an application under section 6
CDDA 1986 200
9.2.5 The applicant s report 202
9.2.6 Leave for the extension of the period of application 204
9.3 Disqualification orders made in the absence of the respondent 206
9.4 Disqualification proceedings by way of summary procedure
(the Carecraft procedure) 207
9.4.1 Disqualification by way of a formal undertaking 208
9.5 The ability to strike out disqualification proceedings 213
9.5.1 For want of prosecution 213
ix
CONTENTS 9.5.2 Awaiting the outcome of other proceedings 218
9.5.3 Staying or suspending a disqualification order pending
an appeal 219
9.6 Conduct which may give rise to other proceedings 220
9.7 The standard of proof 221
9.8 Evidence in proceedings under section 6 222
9.8.1 Hearsay evidence 222
9.8.2 Evidence as to character 223
INDEX 225
x
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spellingShingle | Griffin, Stephen Personal liability and disqualification of company directors Administrateurs de sociétés - Statut juridique - Grande-Bretagne ram Chefs d'entreprise - Statut juridique - Grande-Bretagne ram Directeuren gtt Directors of corporations - Legal status, laws, etc Ontslag gtt Wettelijke aansprakelijkheid gtt Directors of corporations Legal status, laws, etc. Great Britain Liability (Law) Great Britain Gesellschaft Recht (DE-588)4157055-8 gnd Geschäftsführer (DE-588)4020486-8 gnd Haftung (DE-588)4022898-8 gnd Insolvenz (DE-588)4072843-2 gnd |
subject_GND | (DE-588)4157055-8 (DE-588)4020486-8 (DE-588)4022898-8 (DE-588)4072843-2 (DE-588)4022153-2 |
title | Personal liability and disqualification of company directors |
title_auth | Personal liability and disqualification of company directors |
title_exact_search | Personal liability and disqualification of company directors |
title_full | Personal liability and disqualification of company directors Stephen Griffin |
title_fullStr | Personal liability and disqualification of company directors Stephen Griffin |
title_full_unstemmed | Personal liability and disqualification of company directors Stephen Griffin |
title_short | Personal liability and disqualification of company directors |
title_sort | personal liability and disqualification of company directors |
topic | Administrateurs de sociétés - Statut juridique - Grande-Bretagne ram Chefs d'entreprise - Statut juridique - Grande-Bretagne ram Directeuren gtt Directors of corporations - Legal status, laws, etc Ontslag gtt Wettelijke aansprakelijkheid gtt Directors of corporations Legal status, laws, etc. Great Britain Liability (Law) Great Britain Gesellschaft Recht (DE-588)4157055-8 gnd Geschäftsführer (DE-588)4020486-8 gnd Haftung (DE-588)4022898-8 gnd Insolvenz (DE-588)4072843-2 gnd |
topic_facet | Administrateurs de sociétés - Statut juridique - Grande-Bretagne Chefs d'entreprise - Statut juridique - Grande-Bretagne Directeuren Directors of corporations - Legal status, laws, etc Ontslag Wettelijke aansprakelijkheid Directors of corporations Legal status, laws, etc. Great Britain Liability (Law) Great Britain Gesellschaft Recht Geschäftsführer Haftung Insolvenz Großbritannien |
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