The Secretary of State for Business Energy And Industrial Strategy v Murphy

The Secretary of State for Business Energy And Industrial Strategy v Murphy

Mr Murphy caused St John Law Limited to operate a deliberate policy of unfair discrimination against HMRC by systematically failing to pay taxes while paying other creditors and himself, misled HMRC regarding a set-off claim, and made unauthorised payments after a winding-up petition, demonstrating unfitness to be a director under section 6 of the Company Directors Disqualification Act 1986.

Parties
Claimant: The Secretary of State for Business, Energy and Industrial Strategy; Defendant: Raymond St John Murphy
Jurisdiction
England and Wales
Judgment Date
01 March 2019
Procedural Posture
Director Disqualification Application / Judgment After Trial
Outcome
Disqualification order made against Mr Murphy for 8 years under section 6 of the Company Directors Disqualification Act 1986.
Legal Topics
Director Disqualification, Unfit Conduct of Directors, Insolvency Proceedings, Validation Orders, Fiduciary Duties, Tax Liabilities
Insolvency Law Company Law Director Disqualification Unfit Conduct of Directors Insolvency Proceedings Validation Orders Fiduciary Duties Tax Liabilities

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Parties

The Secretary of State for Business, Energy and Industrial Strategy

Claimant

Raymond St John Murphy

Defendant

Procedural Posture

Director Disqualification Application / Judgment After Trial

Legal Issues

  1. 1 Whether Mr Murphy's conduct as director of St John Law Limited made him unfit to be concerned in the management of a company under section 6 of the Company Directors Disqualification Act 1986
  2. 2 Whether payments made after presentation of a winding-up petition were improper and outside the scope of a validation order
  3. 3 Whether the absence of company records prevented a fair trial

Ratio Decidendi

Mr Murphy caused St John Law Limited to operate a deliberate policy of unfair discrimination against HMRC by systematically failing to pay taxes while paying other creditors and himself, misled HMRC regarding a set-off claim, and made unauthorised payments after a winding-up petition, demonstrating unfitness to be a director under section 6 of the Company Directors Disqualification Act 1986.

Court Disposition

Disqualification order made against Mr Murphy for 8 years under section 6 of the Company Directors Disqualification Act 1986.

Orders

  • Mr Murphy disqualified from acting as a director or being concerned in the management of a company for 8 years.