Secretary of State for Business Innovation and Skills v Chohan & Ors [2013] EWHC 680 (Ch) (26 March 2013)

Secretary of State for Business Innovation and Skills v Chohan & Ors [2013] EWHC 680 (Ch) (26 March 2013)

Mr Chohan was found to have acted as both a de facto and shadow director of UKLI during the relevant period, exercising pervasive and decisive influence over the company's affairs, including financial decisions. UKLI operated an unauthorised collective investment scheme in breach of FSMA 2000, and Mr Chohan's conduct in relation to the scheme and improper payments rendered him unfit to be concerned in the management of a company. The requirements of section 6 of the Company Directors Disqualification Act 1986 were satisfied.

Citation
[2013] EWHC 680 (Ch)
Parties
Claimant: THE SECRETARY OF STATE FOR BUSINESS INNOVATION AND SKILLS; Defendant: MR BALINDER CHOHAN (aka BALLY CHOHAN); Defendant: MS LUKHBIR BAINS (aka LUCKY BAINS); Defendant: MR SUDHIR SINGH KUNDI; Defendant: MS SAMEERA SHAIKH; Defendant: MR NIGEL WALTER; Defendant: MR ANAND CHANDRAKANT PANCHOLI
Jurisdiction
England and Wales
Judgment Date
26 March 2013
Procedural Posture
Company Directors Disqualification Proceedings / Judgment After Trial; All But First Defendant Gave Undertakings, Trial Proceeded in Absence of First Defendant
Outcome
Disqualification order made against Mr Chohan under section 6 of the Company Directors Disqualification Act 1986.
Legal Topics
Director Disqualification, De Facto and Shadow Directorship, Collective Investment Schemes, Breach of Regulatory Prohibitions, Unfit Conduct of Directors
Company Law Financial Regulation Insolvency Director Disqualification De Facto and Shadow Directorship Collective Investment Schemes Breach of Regulatory Prohibitions Unfit Conduct of Directors

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Parties

THE SECRETARY OF STATE FOR BUSINESS INNOVATION AND SKILLS

Claimant

MR BALINDER CHOHAN (aka BALLY CHOHAN)

Defendant

MS LUKHBIR BAINS (aka LUCKY BAINS)

Defendant

MR SUDHIR SINGH KUNDI

Defendant

MS SAMEERA SHAIKH

Defendant

MR NIGEL WALTER

Defendant

MR ANAND CHANDRAKANT PANCHOLI

Defendant

Procedural Posture

Company Directors Disqualification Proceedings / Judgment After Trial; All But First Defendant Gave Undertakings, Trial Proceeded in Absence of First Defendant

Legal Issues

  1. 1 Whether Mr Chohan was a de facto or shadow director during the relevant period
  2. 2 Whether UKLI operated an unauthorised collective investment scheme in breach of FSMA 2000
  3. 3 Whether Mr Chohan's conduct rendered him unfit to be concerned in company management

Ratio Decidendi

Mr Chohan was found to have acted as both a de facto and shadow director of UKLI during the relevant period, exercising pervasive and decisive influence over the company's affairs, including financial decisions. UKLI operated an unauthorised collective investment scheme in breach of FSMA 2000, and Mr Chohan's conduct in relation to the scheme and improper payments rendered him unfit to be concerned in the management of a company. The requirements of section 6 of the Company Directors Disqualification Act 1986 were satisfied.

Court Disposition

Disqualification order made against Mr Chohan under section 6 of the Company Directors Disqualification Act 1986.

Orders

  • Mr Chohan disqualified from acting as a director or being concerned in the management of a company for a period to be determined (period not specified in the provided text).
  • Orders previously made in respect of the Second to Sixth Defendants accepting their undertakings.