Acting on behalf of the Applicant liquidator in a misfeasance application under section 212 of the Insolvency Act 1986, Nathan Webb secured judgment against the Respondents in an oral judgment delivered after the trial. The application related to sums paid to third parties using a company debit card. Insolvency and Companies Court Judge Burton found that the vast majority of the payments were made by the company directors for non-business purposes in breach of fiduciary duties under section 171 of the Companies Act 2006 (in respect of both directors) and under section 172 of the Companies Act 2006 (in respect of one of the two directors).
In reaching her decision the Judge rejected a defence advanced under section 1157 of the Companies Act 2006 by reference to reliance placed by the directors on the company’s accountant.
Instructed by Phil Smith at Boyes Turner.
This Judgment was handed down orally by ICC Judge Burton. If you have any questions regarding this judgment, please contact Conor Fagan at email@example.com.