The Secretary of State for Business, Energy & Industrial Strategy v Zannetou (Re: Ixoyc Anesis (2014) Ltd)

The Secretary of State for Business, Energy & Industrial Strategy v Zannetou (Re: Ixoyc Anesis (2014) Ltd)

Mr Zannetou, as sole director, consciously permitted the company to unfairly discriminate against HMRC by prioritising other creditors and failing to pay VAT and PAYE over a prolonged period, without sufficient extenuating circumstances to justify such conduct. This conduct fell below the standards of competence and probity required of company directors and rendered him unfit to be concerned in the management of a company under s6 of the Company Directors Disqualification Act 1986.

Parties
Claimant: The Secretary of State for Business, Energy & Industrial Strategy; Defendant: Damien Lee Andre Zannetou
Jurisdiction
England and Wales
Judgment Date
23 November 2018
Procedural Posture
Director Disqualification Application / Judgment on Liability (period of Disqualification to Be Determined Separately)
Outcome
Disqualification order to be made against Mr Zannetou; period to be determined at a later hearing.
Legal Topics
Director Disqualification, Unfit Conduct of Directors, Insolvent Trading, Preferential Treatment of Creditors
Company Law Insolvency Law Director Disqualification Unfit Conduct of Directors Insolvent Trading Preferential Treatment of Creditors

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Parties

The Secretary of State for Business, Energy & Industrial Strategy

Claimant

Damien Lee Andre Zannetou

Defendant

Procedural Posture

Director Disqualification Application / Judgment on Liability (period of Disqualification to Be Determined Separately)

Legal Issues

  1. 1 Whether Mr Zannetou's conduct as director made him unfit to be concerned in the management of a company under s6 of the Company Directors Disqualification Act 1986
  2. 2 Whether extenuating circumstances justified not making a disqualification order

Ratio Decidendi

Mr Zannetou, as sole director, consciously permitted the company to unfairly discriminate against HMRC by prioritising other creditors and failing to pay VAT and PAYE over a prolonged period, without sufficient extenuating circumstances to justify such conduct. This conduct fell below the standards of competence and probity required of company directors and rendered him unfit to be concerned in the management of a company under s6 of the Company Directors Disqualification Act 1986.

Court Disposition

Disqualification order to be made against Mr Zannetou; period to be determined at a later hearing.

Orders

  • Disqualification order against Damien Lee Andre Zannetou under s6 of the Company Directors Disqualification Act 1986; period of disqualification to be determined after further submissions.