In the matter of Restore Builders Limited En Desastre [2024] JRC 290 (20 December 2024)

In the matter of Restore Builders Limited En Desastre [2024] JRC 290 (20 December 2024)

Mr McLaughlin flagrantly breached statutory obligations, failed to cooperate with the Viscount, misrepresented assets, acted dishonestly, and incorporated the Company to avoid personal bankruptcy knowing insolvency was inevitable. He took no reasonable steps to minimise creditor losses. The statutory tests for director disqualification and wrongful trading are met.

Citation
[2024] JRC 290
Parties
Applicant: Viscount; Respondent: Thomas McLaughlin; Third Party: Restore Builders Limited
Jurisdiction
Jersey
Judgment Date
20 December 2024
Procedural Posture
Bankruptcy and Company Director Disqualification / Final Judgment
Outcome
application granted
Legal Topics
Director Disqualification, Wrongful Trading, Personal Liability for Company Debts
Insolvency Company Law Bankruptcy Director Disqualification Wrongful Trading Personal Liability for Company Debts

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Parties

Viscount

Applicant

Thomas McLaughlin

Respondent

Restore Builders Limited

Third Party

Procedural Posture

Bankruptcy and Company Director Disqualification / Final Judgment

Legal Issues

  1. 1 Should Thomas McLaughlin be disqualified as a company director under Article 78 of the Companies (Jersey) Law 1991?
  2. 2 Should Thomas McLaughlin be made personally responsible for the debts of Restore Builders Limited under Article 44 of the Bankruptcy (Désastre) (Jersey) Law 1990?

Ratio Decidendi

Mr McLaughlin flagrantly breached statutory obligations, failed to cooperate with the Viscount, misrepresented assets, acted dishonestly, and incorporated the Company to avoid personal bankruptcy knowing insolvency was inevitable. He took no reasonable steps to minimise creditor losses. The statutory tests for director disqualification and wrongful trading are met.

Court Disposition

application granted

Orders

  • Thomas McLaughlin disqualified from acting as director of a Jersey company for ten years under Article 78 of the Companies (Jersey) Law 1991.
  • Thomas McLaughlin made personally responsible for the debts of Restore Builders Limited under Article 44 of the Bankruptcy (Désastre) (Jersey) Law 1990.