the Secretary of State for Business, Energy And Industrial Strategy v Geoghegan & Ors [2021] EWHC 672 (Ch) (23 March 2021)

the Secretary of State for Business, Energy And Industrial Strategy v Geoghegan & Ors [2021] EWHC 672 (Ch) (23 March 2021)

Section 6 CDDA, as modified by the LLP Regulations, applies to all members of an LLP, not only those involved in central management. The statutory language is clear and Parliament did not intend to limit disqualification jurisdiction to management board members. Conduct as a member is relevant irrespective of management role.

Citation
[2021] EWHC 672 (Ch)
Parties
Claimant/respondent: The Secretary of State for Business, Energy and Industrial Strategy; First Defendant/applicant: Victoria Louise Geoghegan; Second Defendant/applicant: Nicholas Andrew Lambert; Third Defendant: James Brodie Henderson
Jurisdiction
England and Wales
Judgment Date
23 March 2021
Procedural Posture
Disqualification Proceedings Under Company Directors Disqualification Act 1986 / Application to Strike Out or for Summary Judgment
Outcome
Application to strike out and for summary judgment dismissed
Legal Topics
Directors' Disqualification, Limited Liability Partnerships, Statutory Interpretation
Company Law Insolvency Law Directors' Disqualification Limited Liability Partnerships Statutory Interpretation

Case Brief

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Parties

The Secretary of State for Business, Energy and Industrial Strategy

Claimant/respondent

Victoria Louise Geoghegan

First Defendant/applicant

Nicholas Andrew Lambert

Second Defendant/applicant

James Brodie Henderson

Third Defendant

Procedural Posture

Disqualification Proceedings Under Company Directors Disqualification Act 1986 / Application to Strike Out or for Summary Judgment

Legal Issues

  1. 1 Does section 6 of the Company Directors Disqualification Act 1986, as applied to LLPs by the Limited Liability Partnership Regulations 2001, require a member to be concerned in management for disqualification?
  2. 2 Is the scope of disqualification under CDDA for LLP members limited to those involved in central management?

Ratio Decidendi

Section 6 CDDA, as modified by the LLP Regulations, applies to all members of an LLP, not only those involved in central management. The statutory language is clear and Parliament did not intend to limit disqualification jurisdiction to management board members. Conduct as a member is relevant irrespective of management role.

Court Disposition

Application to strike out and for summary judgment dismissed

Orders

  • Proceedings against Applicants for disqualification under CDDA to continue