AM Holdings Ltd v Batten & Anor

AM Holdings Ltd v Batten & Anor

AM Holdings Limited's claims do not fall within the carve-out for 'personal liability' under section 379(4) of the Companies (Guernsey) Law 2008, as that provision concerns liability to third parties, not to the company itself. Therefore, following discharge, the administrators are not liable for the alleged breaches, and permission to proceed is denied.

Parties
Applicant: AM Holdings Limited; Respondent: Mark Charles Batten; Respondent: Stephen John Le Page
Jurisdiction
England and Wales
Judgment Date
26 April 2018
Procedural Posture
Opposing Applications for Permission to Examine Administrators' Conduct and Strike Out/summary Judgment / Ruling on Permission, Strike Out, and Summary Judgment Applications
Outcome
Permission denied; claims dismissed
Legal Topics
Administrator's Liability, Discharge of Administrators, Misfeasance, Breach of Fiduciary Duty, Statutory Interpretation, Guernsey Law, Estoppel
Insolvency Company Law Cross Border Insolvency Administrator's Liability Discharge of Administrators Misfeasance Breach of Fiduciary Duty Statutory Interpretation +2 more

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Parties

AM Holdings Limited

Applicant

Mark Charles Batten

Respondent

Stephen John Le Page

Respondent

Procedural Posture

Opposing Applications for Permission to Examine Administrators' Conduct and Strike Out/summary Judgment / Ruling on Permission, Strike Out, and Summary Judgment Applications

Legal Issues

  1. 1 Whether AM Holdings Limited can bring claims against discharged administrators under Guernsey law
  2. 2 Interpretation of 'personal liability' under section 379(4) of the Companies (Guernsey) Law 2008
  3. 3 Whether administrators breached duties by selling properties rather than refinancing

Ratio Decidendi

AM Holdings Limited's claims do not fall within the carve-out for 'personal liability' under section 379(4) of the Companies (Guernsey) Law 2008, as that provision concerns liability to third parties, not to the company itself. Therefore, following discharge, the administrators are not liable for the alleged breaches, and permission to proceed is denied.

Court Disposition

Permission denied; claims dismissed

Orders

  • Permission under paragraph 29(2)(c) of Schedule 2 to the CBIR denied for all claims
  • Claims struck out as not based on personal liability within section 379(4) of the Companies (Guernsey) Law 2008