Hunt (As the Liquidator of Wow Internet Ltd) & Anor v Majid

Hunt (As the Liquidator of Wow Internet Ltd) & Anor v Majid

The Respondent failed to discharge the evidential burden to justify the withdrawals from the company bank account, did not provide adequate contemporaneous documentation or explanations, and breached his statutory and fiduciary duties as director. Relief under section 1157 Companies Act 2006 was refused as the...

Source-derived case information.

Parties
Applicant: Stephen John Hunt; Applicant: Wow Internet Limited; Respondent: Qasim Majid
Jurisdiction
England and Wales
Judgment Date
29 October 2020
Procedural Posture
Insolvency Application / Judgment After Trial
Outcome
Claim allowed in full for the Applicants
Legal Topics
Directors' Duties, Fiduciary Duties, Liquidation, Misfeasance, Breach of Duty, Evidential Burden, Relief Under Companies Act 2006 S.1157
Company Law Insolvency Law Directors' Duties Fiduciary Duties Liquidation Misfeasance Breach of Duty Evidential Burden +1 more

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Summary, issues, holding and outcome

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Parties

Stephen John Hunt

Applicant

Wow Internet Limited

Applicant

Qasim Majid

Respondent

Procedural Posture

Insolvency Application / Judgment After Trial

Legal Issues

  1. 1 Whether the Respondent breached statutory and fiduciary duties as director by making unauthorised withdrawals from the company bank account
  2. 2 Whether the Respondent provided sufficient evidence to justify payments as legitimate company expenditure
  3. 3 Whether the Respondent is entitled to relief under section 1157 of the Companies Act 2006

Ratio Decidendi

The Respondent failed to discharge the evidential burden to justify the withdrawals from the company bank account, did not provide adequate contemporaneous documentation or explanations, and breached his statutory and fiduciary duties as director. Relief under section 1157 Companies Act 2006 was refused as the Respondent did not act reasonably in the circumstances.

Court Disposition

Claim allowed in full for the Applicants

Orders

  • Respondent to pay £52,431.30 to the Applicants (Wow Internet Limited, in liquidation)