Official Receiver v Obaigbena

Official Receiver v Obaigbena

Mr Obaigbena caused Arise Networks Ltd to trade to the detriment of creditors from December 2014 onwards with no reasonable prospect of creditors being paid or of the company avoiding insolvent liquidation, relying solely on uncertain external funding and increasing liabilities, thereby demonstrating unfit conduct under section 6 of the Company Directors Disqualification Act 1986.

Parties
Claimant: The Official Receiver; Defendant: Mr Nduka Obaigbena
Jurisdiction
England and Wales
Judgment Date
08 April 2021
Procedural Posture
Application for Director Disqualification / Judgment
Outcome
disqualification order granted
Legal Topics
Director Disqualification, Insolvent Trading, Creditor Protection
Company Law Insolvency Law Director Disqualification Insolvent Trading Creditor Protection

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Parties

The Official Receiver

Claimant

Mr Nduka Obaigbena

Defendant

Procedural Posture

Application for Director Disqualification / Judgment

Legal Issues

  1. 1 Whether Mr Obaigbena's conduct as director of Arise Networks Ltd constituted unfit conduct under section 6 of the Company Directors Disqualification Act 1986
  2. 2 Whether he caused the company to trade to the detriment of creditors with no reasonable prospect of creditors being paid or avoiding insolvent liquidation

Ratio Decidendi

Mr Obaigbena caused Arise Networks Ltd to trade to the detriment of creditors from December 2014 onwards with no reasonable prospect of creditors being paid or of the company avoiding insolvent liquidation, relying solely on uncertain external funding and increasing liabilities, thereby demonstrating unfit conduct under section 6 of the Company Directors Disqualification Act 1986.

Court Disposition

disqualification order granted

Orders

  • Mr Nduka Obaigbena is disqualified from acting as a director for a period of 7 years under section 6 of the Company Directors Disqualification Act 1986