Secretary of State for Business and Trade v Low [2024] EWHC 1812 (Ch) (12 July 2024)

Secretary of State for Business and Trade v Low [2024] EWHC 1812 (Ch) (12 July 2024)

Mr Low was or should have been aware of the risk and features of MTIC VAT fraud in the company's wholesale trading, having been repeatedly warned by HMRC. He either knew or wilfully turned a blind eye to the fraudulent nature of the transactions, failed to implement adequate due diligence, and allowed the company to make wrongful VAT claims. His conduct fell seriously below the standards expected of a director, rendering him unfit under section 6 of the CDDA.

Citation
[2024] EWHC 1812 (Ch)
Parties
Claimant: The Secretary of State for Business and Trade; First Defendant: James Bernard Low; Second Defendant: Sarah Katie Maria Bartlett
Jurisdiction
England and Wales
Judgment Date
12 July 2024
Procedural Posture
Director Disqualification Proceedings / Judgment After Trial
Outcome
Disqualification order made against James Bernard Low under section 6 of the Company Directors Disqualification Act 1986.
Legal Topics
Director Disqualification, Unfit Conduct of Directors, MTIC VAT Fraud, Company Insolvency
Insolvency Law Company Law Director Disqualification Unfit Conduct of Directors MTIC VAT Fraud Company Insolvency

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Parties

The Secretary of State for Business and Trade

Claimant

James Bernard Low

First Defendant

Sarah Katie Maria Bartlett

Second Defendant

Procedural Posture

Director Disqualification Proceedings / Judgment After Trial

Legal Issues

  1. 1 Whether Mr Low's conduct as director rendered him unfit under section 6 of the Company Directors Disqualification Act 1986
  2. 2 Whether Mr Low knew or ought to have known of the company's participation in MTIC VAT fraud
  3. 3 Whether the statutory requirements for a disqualification order are met

Ratio Decidendi

Mr Low was or should have been aware of the risk and features of MTIC VAT fraud in the company's wholesale trading, having been repeatedly warned by HMRC. He either knew or wilfully turned a blind eye to the fraudulent nature of the transactions, failed to implement adequate due diligence, and allowed the company to make wrongful VAT claims. His conduct fell seriously below the standards expected of a director, rendering him unfit under section 6 of the CDDA.

Court Disposition

Disqualification order made against James Bernard Low under section 6 of the Company Directors Disqualification Act 1986.

Orders

  • James Bernard Low is disqualified from acting as a director or being concerned in the management of a company for a period to be determined (not less than 2 years and not more than 15 years).
  • Costs to be determined.