The Secretary of State for Business and Trade v Genov [2025] EWHC 2012 (Ch) (24 January 2025)

The Secretary of State for Business and Trade v Genov [2025] EWHC 2012 (Ch) (24 January 2025)

The defendant, as sole director, knowingly overstated the company's turnover in a Bounce Back Loan application, causing the company to obtain a loan far in excess of its entitlement. This conduct breached the trust placed in directors under the scheme, fell below the standards of probity and competence required, and...

Source-derived case information.

Citation
[2025] EWHC 2012 (Ch)
Parties
Claimant: The Secretary of State for Business and Trade; Defendant: Bozhidar Genov
Jurisdiction
England and Wales
Judgment Date
24 January 2025
Procedural Posture
Director Disqualification and Compensation Order / Trial Judgment
Outcome
Disqualification order for nine years and compensation order granted.
Legal Topics
Director Disqualification, Bounce Back Loan Scheme, Compensation Order, Misstatement of Turnover, Company Directors Disqualification Act 1986
Insolvency Law Company Law Director Disqualification Bounce Back Loan Scheme Compensation Order Misstatement of Turnover Company Directors Disqualification Act 1986

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Parties

The Secretary of State for Business and Trade

Claimant

Bozhidar Genov

Defendant

Procedural Posture

Director Disqualification and Compensation Order / Trial Judgment

Legal Issues

  1. 1 Whether the defendant's conduct in overstating company turnover to obtain a Bounce Back Loan renders him unfit to be a company director under section 6 of the Company Directors Disqualification Act 1986
  2. 2 Whether a compensation order should be made under section 15A of the Company Directors Disqualification Act 1986 for loss caused to creditors

Ratio Decidendi

The defendant, as sole director, knowingly overstated the company's turnover in a Bounce Back Loan application, causing the company to obtain a loan far in excess of its entitlement. This conduct breached the trust placed in directors under the scheme, fell below the standards of probity and competence required, and rendered him unfit to be a director. The misconduct directly caused loss to the lender, justifying both a nine-year disqualification order and a compensation order for the excess sum obtained plus interest.

Court Disposition

Disqualification order for nine years and compensation order granted.

Orders

  • The defendant is disqualified from acting as a director or being concerned in the management of a company for nine years.
  • The defendant must pay £33,726 plus interest at 2.5% from 11 May 2020 as compensation to the Claimant for the benefit of Lloyds or the British Business Bank.