Secretary of State for Business Innovation and Skills v Chohan & Ors

Secretary of State for Business Innovation and Skills v Chohan & Ors

Mr Chohan acted as a de facto and shadow director of UKLI Limited, was responsible for the operation and promotion of an unauthorised collective investment scheme in breach of FSMA 2000, and caused UKLI to make improper unsecured loans and unlawful dividends, demonstrating unfitness to be concerned in the management of a company under section 6 of the Company Directors Disqualification Act 1986. A 12-year disqualification order is warranted.

Parties
Claimant: The Secretary of State for Business, Innovation and Skills; First Defendant: Mr Balinder Chohan (aka Bally Chohan); Second Defendant: Ms Lukhbir Bains (aka Lucky Bains); Third Defendant: Mr Sudhir Singh Kundi; Fourth Defendant: Ms Sameera Shaikh; Fifth Defendant: Mr Nigel Walter; Sixth Defendant: Mr Anand Chandrakant Pancholi
Jurisdiction
England and Wales
Judgment Date
26 March 2013
Procedural Posture
Director Disqualification Proceedings / Judgment After Trial (substantive Determination)
Outcome
Disqualification order granted against Mr Chohan for 12 years.
Legal Topics
Director Disqualification, Collective Investment Schemes, Breach of Fiduciary Duty, Unlawful Dividends, Unsecured Loans, Regulatory Compliance
Company Law Financial Regulation Director Disqualification Collective Investment Schemes Breach of Fiduciary Duty Unlawful Dividends Unsecured Loans Regulatory Compliance

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Parties

The Secretary of State for Business, Innovation and Skills

Claimant

Mr Balinder Chohan (aka Bally Chohan)

First Defendant

Ms Lukhbir Bains (aka Lucky Bains)

Second Defendant

Mr Sudhir Singh Kundi

Third Defendant

Ms Sameera Shaikh

Fourth Defendant

Mr Nigel Walter

Fifth Defendant

Mr Anand Chandrakant Pancholi

Sixth Defendant

Procedural Posture

Director Disqualification Proceedings / Judgment After Trial (substantive Determination)

Legal Issues

  1. 1 Whether Mr Chohan acted as a de facto or shadow director of UKLI Limited during the relevant period
  2. 2 Whether UKLI Limited operated an unauthorised collective investment scheme in breach of the Financial Services and Markets Act 2000
  3. 3 Whether Mr Chohan caused UKLI to make improper unsecured loans and unlawful dividends

Ratio Decidendi

Mr Chohan acted as a de facto and shadow director of UKLI Limited, was responsible for the operation and promotion of an unauthorised collective investment scheme in breach of FSMA 2000, and caused UKLI to make improper unsecured loans and unlawful dividends, demonstrating unfitness to be concerned in the management of a company under section 6 of the Company Directors Disqualification Act 1986. A 12-year disqualification order is warranted.

Court Disposition

Disqualification order granted against Mr Chohan for 12 years.

Orders

  • Mr Chohan is disqualified from acting as a director or being concerned in the management of a company for 12 years.
  • Counsel for the Secretary of State to draw up the order.