Secretary of State for Trade & Industry v Aviss & Ors [2006] EWHC 1846 (Ch) (20 July 2006)

Secretary of State for Trade & Industry v Aviss & Ors [2006] EWHC 1846 (Ch) (20 July 2006)

Mr Aviss and Mr Berry were found to have acted as de facto and shadow directors of Mea Corporation Ltd and its subsidiaries, exercising real influence and control over management decisions, including the improper diversion of company funds to associated companies to the detriment of creditors. Their conduct...

Source-derived case information.

Citation
[2006] EWHC 1846 (Ch)
Parties
Claimant: Secretary of State for Trade and Industry; Defendant: John Stewart Aviss; Defendant: William John Berry; Defendant: Philip David Tonkin; Defendant: David Henry Walker
Jurisdiction
England and Wales
Judgment Date
20 July 2006
Procedural Posture
Company Directors Disqualification Proceedings / Judgment After Trial
Outcome
Disqualification orders granted against Mr Aviss and Mr Berry under section 6 of the Company Directors Disqualification Act 1986.
Legal Topics
Director Disqualification, De Facto and Shadow Directors, Misfeasance, Insolvent Trading
Company Law Insolvency Law Director Disqualification De Facto and Shadow Directors Misfeasance Insolvent Trading

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Summary, issues, holding and outcome

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Parties

Secretary of State for Trade and Industry

Claimant

John Stewart Aviss

Defendant

William John Berry

Defendant

Philip David Tonkin

Defendant

David Henry Walker

Defendant

Procedural Posture

Company Directors Disqualification Proceedings / Judgment After Trial

Legal Issues

  1. 1 Whether Mr Aviss and Mr Berry acted as de facto or shadow directors of Mea Corporation Ltd, Mea Projects Ltd, and CJB (Brightchance Ltd)
  2. 2 Whether their conduct as directors made them unfit to be concerned in the management of a company under section 6 of the Company Directors Disqualification Act 1986
  3. 3 Whether the proceedings constituted an abuse of process given Mr Berry's existing disqualification

Ratio Decidendi

Mr Aviss and Mr Berry were found to have acted as de facto and shadow directors of Mea Corporation Ltd and its subsidiaries, exercising real influence and control over management decisions, including the improper diversion of company funds to associated companies to the detriment of creditors. Their conduct demonstrated unfitness to be concerned in company management under section 6 of the Company Directors Disqualification Act 1986.

Court Disposition

Disqualification orders granted against Mr Aviss and Mr Berry under section 6 of the Company Directors Disqualification Act 1986.

Orders

  • Mr Aviss and Mr Berry disqualified from acting as directors or being concerned in the management of a company for a period to be determined.
  • Costs to be assessed.