Brown v Bashir & Anor

Brown v Bashir & Anor

Cash was diverted from the company by the First Respondent, and likely also by the Second Respondent, in breach of fiduciary duties; Respondents failed to account for company assets and deliberately concealed records; equitable compensation is due and an account must be taken.

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 Application / Judgment After Trial
Outcome
Declaration of breach of fiduciary duty and order for taking of account to determine equitable compensation.
Legal Topics
Directors' Duties, Misfeasance, Equitable Compensation, Limitation, VAT Assessment
Company Law Insolvency Law Directors' Duties Misfeasance Equitable Compensation Limitation VAT Assessment

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 9 Authorities cited 13 Party arguments 2 Amounts and remedies 10
Sign in to unlock

Parties

Kevin Thomas Brown

Applicant

Abdul Monnan Bashir

First Respondent

Abdul Bahar Bashir

Second Respondent

Procedural Posture

Insolvency Application / Judgment After Trial

Legal Issues

  1. 1 Whether Respondents misappropriated company cash and breached fiduciary duties
  2. 2 Whether Respondents failed to properly declare income and account for VAT
  3. 3 Whether Respondents failed to pursue appeal against HMRC assessment

Ratio Decidendi

Cash was diverted from the company by the First Respondent, and likely also by the Second Respondent, in breach of fiduciary duties; Respondents failed to account for company assets and deliberately concealed records; equitable compensation is due and an account must be taken.

Court Disposition

Declaration of breach of fiduciary duty and order for taking of account to determine equitable compensation.

Orders

  • Order for taking of account to quantify sums misappropriated.
  • Directions to be given for account.