THE OFFICIAL RECEIVER v NDUKA OBAIGBENA

THE OFFICIAL RECEIVER v NDUKA OBAIGBENA

The judge did not err in law by failing to apply a test of whether Mr Obaigbena ought to have known there was no reasonable prospect of creditors being paid or the company avoiding insolvent liquidation. The proven conduct—trading to the detriment of creditors with no reasonable prospect of payment—was sufficient to find unfitness. The period of 7 years' disqualification was within the judge's discretion and not grossly disproportionate.

Parties
Respondent: THE OFFICIAL RECEIVER; Appellant: NDUKA OBAIGBENA
Jurisdiction
England and Wales
Judgment Date
14 June 2022
Procedural Posture
Appeal / Judgment on Appeal From Disqualification Order
Outcome
Appeal dismissed
Legal Topics
Director Disqualification, Trading While Insolvent, Unfitness to Manage Company, Period of Disqualification
Insolvency Law Company Law Director Disqualification Trading While Insolvent Unfitness to Manage Company Period of Disqualification

Case Brief

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Parties

THE OFFICIAL RECEIVER

Respondent

NDUKA OBAIGBENA

Appellant

Procedural Posture

Appeal / Judgment on Appeal From Disqualification Order

Legal Issues

  1. 1 Whether the trial judge applied the correct legal test for director unfitness under section 6 of the Company Directors Disqualification Act 1986
  2. 2 Whether the period of disqualification (7 years) was appropriate and proportionate

Ratio Decidendi

The judge did not err in law by failing to apply a test of whether Mr Obaigbena ought to have known there was no reasonable prospect of creditors being paid or the company avoiding insolvent liquidation. The proven conduct—trading to the detriment of creditors with no reasonable prospect of payment—was sufficient to find unfitness. The period of 7 years' disqualification was within the judge's discretion and not grossly disproportionate.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed on both grounds advanced.