HER MAJESTY'S SECRETARY OF STATE FOR BUSINESS INNOVATION AND SKILLS v. PETER JAMES ATKINSON CAMPBELL [2010] ScotSC 106 (14 June 2010)

HER MAJESTY'S SECRETARY OF STATE FOR BUSINESS INNOVATION AND SKILLS v. PETER JAMES ATKINSON CAMPBELL [2010] ScotSC 106 (14 June 2010)

The defender, as principal and controlling director, caused or permitted payments to his wife in preference to other creditors, including HM Revenue and Customs, at a time when the company was insolvent and with knowledge of the company's financial position. He failed to act fairly between creditors and abrogated his responsibilities as a director, demonstrating a lack of probity and conduct falling below the required standard. This made him unfit to be concerned in the management of a company, warranting a disqualification order under the Company Directors Disqualification Act 1986.

Citation
[2010] ScotSC 106
Parties
Pursuer: Her Majesty's Secretary of State for Business, Innovation and Skills; Defender: Peter James Atkinson Campbell
Jurisdiction
Scotland
Judgment Date
14 June 2010
Procedural Posture
Company Directors Disqualification / Final Judgment After Proof
Outcome
Disqualification order granted against the defender for three years under the Company Directors Disqualification Act 1986.
Legal Topics
Director Disqualification, Unfair Preference, Director's Duties, Insolvency Proceedings
Company Law Insolvency Law Director Disqualification Unfair Preference Director's Duties Insolvency Proceedings

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Parties

Her Majesty's Secretary of State for Business, Innovation and Skills

Pursuer

Peter James Atkinson Campbell

Defender

Procedural Posture

Company Directors Disqualification / Final Judgment After Proof

Legal Issues

  1. 1 Whether the defender's conduct as director made him unfit to be concerned in the management of a company under the Company Directors Disqualification Act 1986
  2. 2 Whether the defender caused or permitted unfair preference payments to a connected person (his wife) to the detriment of other creditors, including HM Revenue and Customs
  3. 3 Whether the defender abrogated his responsibilities as a director by delegating duties and failing to ensure payment of creditors

Ratio Decidendi

The defender, as principal and controlling director, caused or permitted payments to his wife in preference to other creditors, including HM Revenue and Customs, at a time when the company was insolvent and with knowledge of the company's financial position. He failed to act fairly between creditors and abrogated his responsibilities as a director, demonstrating a lack of probity and conduct falling below the required standard. This made him unfit to be concerned in the management of a company, warranting a disqualification order under the Company Directors Disqualification Act 1986.

Court Disposition

Disqualification order granted against the defender for three years under the Company Directors Disqualification Act 1986.

Orders

  • Peter James Atkinson Campbell is disqualified from acting as a director or being concerned in the management of a company for three years, beginning 21 days after the order.
  • The order is to be registered by the Secretary of State for Business, Innovation and Skills.