Secretary of State for Business Innovation and Skills v Aaron & Ors

Secretary of State for Business Innovation and Skills v Aaron & Ors

Both defendants failed to take all reasonable steps to ensure DMA complied with regulatory responsibilities, resulting in mis-selling, inadequate record-keeping, and corporate governance failures; their conduct rendered them unfit to act as directors under s.6 CDDA.

Parties
Claimant: Secretary of State for Business Innovation and Skills; Defendant: David Meyer Aaron; Defendant: Andrew Cameron Jones; Defendant: Michael Meyer Aaron
Jurisdiction
England and Wales
Judgment Date
10 December 2009
Procedural Posture
Application / Judgment
Outcome
Disqualification order is mandatory under CDDA s.6; court will hear further submissions on length of disqualification.
Legal Topics
Director Disqualification, Mis Selling, Regulatory Compliance, Corporate Governance
Company Law Financial Regulation Director Disqualification Mis Selling Regulatory Compliance Corporate Governance

Case Brief

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Parties

Secretary of State for Business Innovation and Skills

Claimant

David Meyer Aaron

Defendant

Andrew Cameron Jones

Defendant

Michael Meyer Aaron

Defendant

Procedural Posture

Application / Judgment

Legal Issues

  1. 1 Whether the defendants' conduct as directors made them unfit to be concerned in the management of a company under s.6 CDDA
  2. 2 Whether SCARPS were mis-sold in breach of regulatory requirements
  3. 3 Whether marketing materials and advice complied with FSA/PIA rules

Ratio Decidendi

Both defendants failed to take all reasonable steps to ensure DMA complied with regulatory responsibilities, resulting in mis-selling, inadequate record-keeping, and corporate governance failures; their conduct rendered them unfit to act as directors under s.6 CDDA.

Court Disposition

Disqualification order is mandatory under CDDA s.6; court will hear further submissions on length of disqualification.

Orders

  • Second and third defendants to be disqualified from acting as directors under s.6 CDDA; length of disqualification to be determined.