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RECENT CASES |
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Director disqualified in the public interest See CLM ¶3030 Secretary of State for BERR v Sullman and another [2008] EWHC 3179 (Ch) The court may make a disqualification order against a director in the public interest where it is satisfied that his conduct in relation to the company makes him unfit to be concerned in the management of a company. The High Court has held that “conduct in relation to the company” is wider than conduct prejudicing the company itself. Mr S was a director of CD plc. His conduct had been investigated by the CIB, leading to an application for his disqualification in the public interest. The court found him to be seriously at fault in seeking to establish a business by widespread misrepresentations. The court exercised its discretion to make a disqualification order, even though the conduct of Mr S did not prejudice the company. It considered that the public interest ground for disqualification is wide enough to include conduct that prejudices shareholders, customers, funders or anyone else who has a commercial relationship with the company and so refers to the way its business is run. Mr S was disqualified for a period of 7 years to protect the public and to deter other directors who might engage in similar conduct. The fact that Mr S had sought advice from a professional did not prevent him from being disqualified. Seeking advice from a competent professional, and acting on it, will tend to demonstrate fitness but it is not a deciding factor. |
