Dyment v Boyden & Ors

Dyment v Boyden & Ors

The company's entry into the lease was not for the purpose of acquiring shares but to obtain premises for business continuity. No unlawful financial assistance was given under s.151 Companies Act 1985.

Source-derived case information.

Parties
Appellant: Audrey Dyment; 1st Respondent: Patrick Michael Boyden; 2nd Respondent: Evan Elias Bishop; 3rd Respondent: Paul Evan Bishop
Jurisdiction
England and Wales
Judgment Date
26 November 2004
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal dismissed
Legal Topics
Financial Assistance for Acquisition of Shares, Proofs of Debt in Liquidation, Directors' Duties
Company Law Insolvency Law Financial Assistance for Acquisition of Shares Proofs of Debt in Liquidation Directors' Duties

Source-derived case record

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Parties

Audrey Dyment

Appellant

Patrick Michael Boyden

1st Respondent

Evan Elias Bishop

2nd Respondent

Paul Evan Bishop

3rd Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether entry into a lease at excessive rent constituted unlawful financial assistance under s.151 Companies Act 1985
  2. 2 Whether the lease was void and unenforceable due to contravention of s.151
  3. 3 Whether the company's purpose in entering the lease was for the acquisition of shares

Ratio Decidendi

The company's entry into the lease was not for the purpose of acquiring shares but to obtain premises for business continuity. No unlawful financial assistance was given under s.151 Companies Act 1985.

Court Disposition

Appeal dismissed

Orders

  • No relief granted to appellant
  • Proofs of debt by Bishops remain admitted