Parker v Masson & Ors [2019] EWCC 2 (16 May 2019)

Parker v Masson & Ors [2019] EWCC 2 (16 May 2019)

Permission to bring a derivative claim is refused because the liquidator is independent, understands her duties, and is prepared to investigate and pursue claims if appropriate. The interests of creditors take precedence, and there is no strong evidence the liquidator will not perform her functions properly.

Citation
[2019] EWCC 2
Parties
Claimant: Mr Parker; First Respondent: Mr Masson; Second Respondent: Mr Bennett; Intervener: Liquidator (represented by Mr Hammond)
Jurisdiction
England and Wales
Judgment Date
16 May 2019
Procedural Posture
Derivative Claim Application Under Companies Act 2006 / Application for Permission to Bring Derivative Claim
Outcome
Permission to bring a derivative claim refused
Legal Topics
Derivative Claims, Directors' Duties, Fiduciary Duties, Liquidation, Shareholder Remedies
Company Law Insolvency Law Derivative Claims Directors' Duties Fiduciary Duties Liquidation Shareholder Remedies

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Parties

Mr Parker

Claimant

Mr Masson

First Respondent

Mr Bennett

Second Respondent

Liquidator (represented by Mr Hammond)

Intervener

Procedural Posture

Derivative Claim Application Under Companies Act 2006 / Application for Permission to Bring Derivative Claim

Legal Issues

  1. 1 Whether permission should be granted to bring a derivative claim after the company has entered insolvent liquidation
  2. 2 Whether the liquidator is the proper party to pursue claims on behalf of the company
  3. 3 Whether the liquidation was part of a scheme to avoid liability

Ratio Decidendi

Permission to bring a derivative claim is refused because the liquidator is independent, understands her duties, and is prepared to investigate and pursue claims if appropriate. The interests of creditors take precedence, and there is no strong evidence the liquidator will not perform her functions properly.

Court Disposition

Permission to bring a derivative claim refused

Orders

  • Application for permission to bring derivative claim dismissed
  • Liquidator to carry out her duties