Brown v Bashir & Anor [2021] EWHC 337 (Ch) (26 February 2021)

Brown v Bashir & Anor [2021] EWHC 337 (Ch) (26 February 2021)

The Respondents, as directors and fiduciaries, diverted cash from the Company without proper accounting, breaching statutory and fiduciary duties; equitable compensation is due, quantum to be determined by taking an account; limitation defences fail due to deliberate concealment and fiduciary status.

Citation
[2021] EWHC 337 (Ch)
Parties
Applicant: Kevin Thomas Brown; First Respondent: Abdul Monnan Bashir; Second Respondent: Abdul Bahar Bashir
Jurisdiction
England and Wales
Judgment Date
26 February 2021
Procedural Posture
Insolvency Misfeasance Application / Post Trial Judgment
Outcome
Order for taking of an account to determine equitable compensation; Respondents found liable for breach of fiduciary and statutory duties.
Legal Topics
Directors' Duties, Misfeasance, Equitable Compensation, VAT Assessment, Limitation of Actions
Insolvency Company Law Directors' Duties Misfeasance Equitable Compensation VAT Assessment Limitation of Actions

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Parties

Kevin Thomas Brown

Applicant

Abdul Monnan Bashir

First Respondent

Abdul Bahar Bashir

Second Respondent

Procedural Posture

Insolvency Misfeasance Application / Post Trial Judgment

Legal Issues

  1. 1 Whether Respondents diverted cash from the Company for personal benefit
  2. 2 Whether Respondents breached fiduciary and statutory duties under Companies Act 2006
  3. 3 Whether Respondents failed to properly manage and account for Company assets

Ratio Decidendi

The Respondents, as directors and fiduciaries, diverted cash from the Company without proper accounting, breaching statutory and fiduciary duties; equitable compensation is due, quantum to be determined by taking an account; limitation defences fail due to deliberate concealment and fiduciary status.

Court Disposition

Order for taking of an account to determine equitable compensation; Respondents found liable for breach of fiduciary and statutory duties.

Orders

  • Account to be taken of sums removed from Company by Respondents; directions to be determined after hearing counsel.
  • If Respondents fail to produce records, Court may determine quantum based on HMRC evidence.