Secretary of State for Business and Trade v Anderson (Re Paranoid Expedition Engineering Ltd - Insolvency Act 1986 - s.6 Company Directors Disqualification Act 1986) [2024] EWHC 1090 (Ch) (10 May 2024)

Secretary of State for Business and Trade v Anderson (Re Paranoid Expedition Engineering Ltd - Insolvency Act 1986 - s.6 Company Directors Disqualification Act 1986) [2024] EWHC 1090 (Ch) (10 May 2024)

Ms Anderson's conduct in authorising substantial payments to PEL was not supported by credible evidence of legitimate debt or benefit to the company, was to the detriment of creditors at a time of insolvency, and involved misuse of government-backed loans, cumulatively rendering her unfit to be a director under s.6...

Source-derived case information.

Citation
[2024] EWHC 1090 (Ch)
Parties
Claimant: The Secretary of State for Business and Trade; Defendant: Helen Anderson
Jurisdiction
England and Wales
Judgment Date
10 May 2024
Procedural Posture
Director Disqualification Application / Judgment After Trial
Outcome
Disqualification order made against Ms Anderson under s.6 CDDA.
Legal Topics
Director Disqualification, Misfeasance, Insolvent Trading, Breach of Directors' Duties
Insolvency Law Company Law Director Disqualification Misfeasance Insolvent Trading Breach of Directors' Duties

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Parties

The Secretary of State for Business and Trade

Claimant

Helen Anderson

Defendant

Procedural Posture

Director Disqualification Application / Judgment After Trial

Legal Issues

  1. 1 Whether Ms Anderson's conduct as director rendered her unfit under s.6 Company Directors Disqualification Act 1986
  2. 2 Whether payments made to Paranoid Engineering Limited (PEL) were to the detriment of creditors
  3. 3 Whether payments breached Bounce Back Loan and CBIL loan agreements

Ratio Decidendi

Ms Anderson's conduct in authorising substantial payments to PEL was not supported by credible evidence of legitimate debt or benefit to the company, was to the detriment of creditors at a time of insolvency, and involved misuse of government-backed loans, cumulatively rendering her unfit to be a director under s.6 CDDA.

Court Disposition

Disqualification order made against Ms Anderson under s.6 CDDA.

Orders

  • Ms Anderson disqualified from acting as a director for a specified period (period to be determined in final order).