Secretary of State for Trade & Industry v Amiss & Ors

Secretary of State for Trade & Industry v Amiss & Ors

Mr Chapman’s conduct in authorising and participating in the dishonest practice of grossing up insurance premiums, diverting secret profits, and failing to implement adequate controls constituted serious breaches of fiduciary duty to both the company and its clients, rendering him unfit to be a director. His knowledge and participation satisfied the test for dishonesty, and procedural objections did not bar the proceedings. Disqualification for nine years was warranted given the gravity and scale of misconduct.

Parties
Claimant: The Secretary of State for Trade & Industry; First Defendant: Michael Hamilton Amiss; Second Defendant: Jonathan Andrew Chapman; Third Defendant: Roger Rex Ingles
Jurisdiction
England and Wales
Judgment Date
20 March 2003
Procedural Posture
Disqualification Application Under Company Directors Disqualification Act 1986 (cdda 86) / Judgment After Trial
Outcome
Disqualification order granted against Mr Chapman for nine years.
Legal Topics
Director Disqualification, Fiduciary Duties, Dishonesty, Insurance Brokerage Regulation, Issue Estoppel
Company Law Insolvency Law Regulatory Law Director Disqualification Fiduciary Duties Dishonesty Insurance Brokerage Regulation Issue Estoppel

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Parties

The Secretary of State for Trade & Industry

Claimant

Michael Hamilton Amiss

First Defendant

Jonathan Andrew Chapman

Second Defendant

Roger Rex Ingles

Third Defendant

Procedural Posture

Disqualification Application Under Company Directors Disqualification Act 1986 (cdda 86) / Judgment After Trial

Legal Issues

  1. 1 Whether Mr Chapman’s conduct rendered him unfit to be a company director under section 8 CDDA 86
  2. 2 Whether the practice of 'grossing up' premiums constituted dishonesty and breach of fiduciary duty
  3. 3 Whether previous findings by Lloyd’s and in civil litigation preclude or support the present proceedings

Ratio Decidendi

Mr Chapman’s conduct in authorising and participating in the dishonest practice of grossing up insurance premiums, diverting secret profits, and failing to implement adequate controls constituted serious breaches of fiduciary duty to both the company and its clients, rendering him unfit to be a director. His knowledge and participation satisfied the test for dishonesty, and procedural objections did not bar the proceedings. Disqualification for nine years was warranted given the gravity and scale of misconduct.

Court Disposition

Disqualification order granted against Mr Chapman for nine years.

Orders

  • Mr Jonathan Andrew Chapman is disqualified from acting as a director or being concerned in the management of a company for a period of nine years.
  • Judgment to be brought to the attention of the Secretary of State and Lloyd’s authorities for consideration of further investigation into grossing up practices.