The Secretary of State for Business, Energy and Industrial Strategy v Steven [2018] EWHC 1331 (Ch) (12 June 2018)

The Secretary of State for Business, Energy and Industrial Strategy v Steven [2018] EWHC 1331 (Ch) (12 June 2018)

The court found that Mr Steven's conduct in failing to ensure the companies complied with statutory duties to file returns and make payments to HMRC, and in causing the companies to trade to the detriment of HMRC (and utility suppliers for RTD), constituted unfit conduct under section 6 of the CDDA. The evidence did not support Mr Steven's contention that paper VAT returns were submitted, and the scale and duration of the preferential treatment of HMRC and utility suppliers was sufficiently serious to warrant disqualification.

Citation
[2018] EWHC 1331 (Ch)
Parties
Claimant: The Secretary of State for Business, Energy and Industrial Strategy; Defendant: Edward Charles Ormond Steven
Jurisdiction
England and Wales
Judgment Date
12 June 2018
Procedural Posture
Directors Disqualification Proceedings / Judgment After Trial
Outcome
Disqualification order made against Mr Steven under section 6 of the Company Directors Disqualification Act 1986.
Legal Topics
Directors' Disqualification, Unfit Conduct of Directors, Trading to the Detriment of Creditors, Failure to File Returns, Preferential Treatment of Creditors
Insolvency Law Company Law Directors' Disqualification Unfit Conduct of Directors Trading to the Detriment of Creditors Failure to File Returns Preferential Treatment of Creditors

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Parties

The Secretary of State for Business, Energy and Industrial Strategy

Claimant

Edward Charles Ormond Steven

Defendant

Procedural Posture

Directors Disqualification Proceedings / Judgment After Trial

Legal Issues

  1. 1 Whether Mr Steven's conduct as director of CQH1 Limited, RTD1 Limited, and The Glassblowing House Limited made him unfit to be concerned in the management of a company under section 6 of the Company Directors Disqualification Act 1986
  2. 2 Whether Mr Steven caused the companies to trade to the detriment of HMRC and, in the case of RTD, utility suppliers
  3. 3 Whether failures to file statutory returns and make payments to HMRC constituted unfit conduct

Ratio Decidendi

The court found that Mr Steven's conduct in failing to ensure the companies complied with statutory duties to file returns and make payments to HMRC, and in causing the companies to trade to the detriment of HMRC (and utility suppliers for RTD), constituted unfit conduct under section 6 of the CDDA. The evidence did not support Mr Steven's contention that paper VAT returns were submitted, and the scale and duration of the preferential treatment of HMRC and utility suppliers was sufficiently serious to warrant disqualification.

Court Disposition

Disqualification order made against Mr Steven under section 6 of the Company Directors Disqualification Act 1986.

Orders

  • Mr Steven is disqualified from acting as a director or being concerned in the management of a company for a period to be determined.
  • Costs to be determined in accordance with the court's directions.