Secretary of State for Business Enterprise and Regulatory Reform v Sullman & Anor [2008] EWHC 3179 (Ch) (19 December 2008)

Secretary of State for Business Enterprise and Regulatory Reform v Sullman & Anor [2008] EWHC 3179 (Ch) (19 December 2008)

Mr Sullman was found unfit to be concerned in the management of a company due to his culpable conduct in permitting widespread misrepresentation to customers regarding the recoverability of insurance premiums, despite unequivocal legal advice and manifest uncertainty in the law, motivated by a desire to establish a lucrative market position. His conduct fell below the minimum standard of commercial probity required of company directors.

Citation
[2008] EWHC 3179 (Ch)
Parties
Claimant: The Secretary of State for Business Enterprise and Regulatory Reform; First Defendant: Anthony Frederick Sullman; Second Defendant: Colin David Poole
Jurisdiction
England and Wales
Judgment Date
19 December 2008
Procedural Posture
Director Disqualification Application / Judgment After Trial
Outcome
Disqualification order made against Mr Sullman under section 8 of the Company Directors Disqualification Act 1986.
Legal Topics
Director Disqualification, Commercial Misrepresentation, Corporate Governance, Insurance Law
Company Law Insolvency Law Director Disqualification Commercial Misrepresentation Corporate Governance Insurance Law

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Parties

The Secretary of State for Business Enterprise and Regulatory Reform

Claimant

Anthony Frederick Sullman

First Defendant

Colin David Poole

Second Defendant

Procedural Posture

Director Disqualification Application / Judgment After Trial

Legal Issues

  1. 1 Whether Mr Sullman's conduct as director rendered him unfit to be concerned in the management of a company under section 8 of the Company Directors Disqualification Act 1986
  2. 2 Whether misrepresentations to customers and underwriters constituted misconduct justifying disqualification
  3. 3 Whether the marketing and sale of the Claims Direct Protect insurance product involved culpable misrepresentation

Ratio Decidendi

Mr Sullman was found unfit to be concerned in the management of a company due to his culpable conduct in permitting widespread misrepresentation to customers regarding the recoverability of insurance premiums, despite unequivocal legal advice and manifest uncertainty in the law, motivated by a desire to establish a lucrative market position. His conduct fell below the minimum standard of commercial probity required of company directors.

Court Disposition

Disqualification order made against Mr Sullman under section 8 of the Company Directors Disqualification Act 1986.

Orders

  • Mr Sullman is disqualified from acting as a director or being concerned in the management of a company for a period to be determined.
  • No finding of culpable conduct in relation to post-April 2000 policies regarding the insurance premium composition.