Green, (as liquidator of Sports Management Group Ltd) v Marston & Anor [2016] EWHC B11 (Ch) (20 May 2016)

Green, (as liquidator of Sports Management Group Ltd) v Marston & Anor [2016] EWHC B11 (Ch) (20 May 2016)

Mr Lochner was found to have acted as a de facto director of Sports Management Group Limited, having been held out as such, participated in the management and governance of the company, signed documents as director, and exercised real influence and control over company affairs. He is therefore subject to the duties and liabilities of a director, including liability for misfeasance and for the return of preferential payments and transactions at undervalue.

Citation
[2016] EWHC B11 (Ch)
Parties
Applicant / Liquidator: Elliot Harry Green; Company in Liquidation: Sports Management Group Limited; First Respondent: Richard Marston; Second Respondent: Wayne Lochner
Jurisdiction
England and Wales
Judgment Date
20 May 2016
Procedural Posture
Insolvency Application (liquidator's Claim) / Trial Judgment
Outcome
Application granted in part against Mr Lochner; Mr Lochner found liable as de facto director for misfeasance and certain payments.
Legal Topics
De Facto Director Liability, Misfeasance, Preferential Payments, Transactions at Undervalue
Insolvency Company Law De Facto Director Liability Misfeasance Preferential Payments Transactions at Undervalue

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Parties

Elliot Harry Green

Applicant / Liquidator

Sports Management Group Limited

Company in Liquidation

Richard Marston

First Respondent

Wayne Lochner

Second Respondent

Procedural Posture

Insolvency Application (liquidator's Claim) / Trial Judgment

Legal Issues

  1. 1 Whether Mr Lochner was a de facto director of Sports Management Group Limited
  2. 2 Whether payments to Mr Lochner were preferential or transactions at undervalue
  3. 3 Whether Mr Lochner is liable for misfeasance under s.212 Insolvency Act 1986

Ratio Decidendi

Mr Lochner was found to have acted as a de facto director of Sports Management Group Limited, having been held out as such, participated in the management and governance of the company, signed documents as director, and exercised real influence and control over company affairs. He is therefore subject to the duties and liabilities of a director, including liability for misfeasance and for the return of preferential payments and transactions at undervalue.

Court Disposition

Application granted in part against Mr Lochner; Mr Lochner found liable as de facto director for misfeasance and certain payments.

Orders

  • Mr Lochner is liable to repay sums found to be preferential payments and transactions at undervalue.
  • Costs awarded to the Liquidator.