Ricketts v Ad Valorem Factors Ltd.

Ricketts v Ad Valorem Factors Ltd.

The name 'Air Equipment Company Limited' is so similar to 'The Air Component Company Limited' as to suggest an association within the meaning of section 216(2)(b) of the Insolvency Act 1986. The appellant, having acted as a director of both companies within the relevant statutory periods and without leave of court, is personally liable for the debts of Air Equipment Company Limited under section 217. The statute does not require proof of actual deception or misrepresentation; the threshold is whether the name suggests an association.

Parties
Appellant: Christopher Ricketts; Respondent: Ad Valorem Factors Ltd
Jurisdiction
England and Wales
Judgment Date
28 November 2003
Procedural Posture
Civil Appeal / Appeal From Summary Judgment
Outcome
Appeal dismissed
Legal Topics
Personal Liability of Directors, Prohibited Company Names, Phoenix Companies, Interpretation of Insolvency Act 1986
Insolvency Law Company Law Personal Liability of Directors Prohibited Company Names Phoenix Companies Interpretation of Insolvency Act 1986

Case Brief

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Parties

Christopher Ricketts

Appellant

Ad Valorem Factors Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal From Summary Judgment

Legal Issues

  1. 1 Whether the name 'Air Equipment Company Limited' is a prohibited name under section 216(2)(b) of the Insolvency Act 1986 as being so similar to 'The Air Component Company Limited' as to suggest an association
  2. 2 Whether the appellant is personally liable for the debts of Air Equipment Company Limited under sections 216 and 217 of the Insolvency Act 1986

Ratio Decidendi

The name 'Air Equipment Company Limited' is so similar to 'The Air Component Company Limited' as to suggest an association within the meaning of section 216(2)(b) of the Insolvency Act 1986. The appellant, having acted as a director of both companies within the relevant statutory periods and without leave of court, is personally liable for the debts of Air Equipment Company Limited under section 217. The statute does not require proof of actual deception or misrepresentation; the threshold is whether the name suggests an association.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs to the respondent on the standard basis, subject to detailed assessment if not agreed.
  • Interest on the judgment sum at the normal rate.