The Secretary of State for Business Energy and Industrial Stategy v Broadstock & Ors

The Secretary of State for Business Energy and Industrial Stategy v Broadstock & Ors

Both Mrs Broadstock and Mr Jones permitted misuse of client monies held on trust, failed to prevent or investigate breaches, and exposed clients and creditors to significant risk, falling below standards of probity and competence required of company directors, making them unfit under Section 6 of the Company Directors Disqualification Act 1986.

Parties
Claimant: THE SECRETARY OF STATE FOR BUSINESS ENERGY AND INDUSTRIAL STATEGY; Defendant: MARK JOHN BROADSTOCK; Defendant: JOSEPHINE LESTER BROADSTOCK; Defendant: ROBERT MAREK JONES
Jurisdiction
England and Wales
Judgment Date
08 August 2018
Procedural Posture
Company Directors Disqualification / Judgment
Outcome
Disqualification orders granted against Mrs Broadstock and Mr Jones.
Legal Topics
Directors' Duties, Disqualification, Breach of Trust, Misuse of Client Funds
Company Law Insolvency Law Directors' Duties Disqualification Breach of Trust Misuse of Client Funds

Case Brief

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Parties

THE SECRETARY OF STATE FOR BUSINESS ENERGY AND INDUSTRIAL STATEGY

Claimant

MARK JOHN BROADSTOCK

Defendant

JOSEPHINE LESTER BROADSTOCK

Defendant

ROBERT MAREK JONES

Defendant

Procedural Posture

Company Directors Disqualification / Judgment

Legal Issues

  1. 1 Whether Mrs Broadstock and Mr Jones are unfit to be concerned in the management of a company under Section 6 of the Company Directors Disqualification Act 1986 due to misuse of client funds and breach of directors' duties.

Ratio Decidendi

Both Mrs Broadstock and Mr Jones permitted misuse of client monies held on trust, failed to prevent or investigate breaches, and exposed clients and creditors to significant risk, falling below standards of probity and competence required of company directors, making them unfit under Section 6 of the Company Directors Disqualification Act 1986.

Court Disposition

Disqualification orders granted against Mrs Broadstock and Mr Jones.

Orders

  • Mrs Broadstock disqualified for 8 years.
  • Mr Jones disqualified for 7 years.