HM Secretary of State for Business, Innovation and Skills v Drummond [2015] ScotCS CSOH_45 (21 April 2015)

HM Secretary of State for Business, Innovation and Skills v Drummond [2015] ScotCS CSOH_45 (21 April 2015)

The respondent's deliberate and knowing breach of security conditions and dissipation of company assets to connected persons, with the aim of defeating creditors, constituted grave misconduct and a serious want of commercial probity, rendering him unfit to be concerned in the management of a company. A 10-year disqualification is necessary to mark the gravity of the conduct.

Citation
[2015] ScotCS CSOH_45
Parties
Petitioner: Her Majesty’s Secretary of State for Business, Innovation and Skills; Respondent: Andrew Page Drummond
Jurisdiction
Scotland
Judgment Date
21 April 2015
Procedural Posture
Petition for Disqualification Order / Judgment on Unopposed Application
Outcome
petition granted
Legal Topics
Director Disqualification, Breach of Fiduciary Duty, Floating Charge, Standard Security, Asset Dissipation
Company Law Insolvency Law Director Disqualification Breach of Fiduciary Duty Floating Charge Standard Security Asset Dissipation

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Parties

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

Petitioner

Andrew Page Drummond

Respondent

Procedural Posture

Petition for Disqualification Order / Judgment on Unopposed Application

Legal Issues

  1. 1 Whether the respondent's conduct as director rendered him unfit to be concerned in the management of a company under section 6 of the Company Directors Disqualification Act 1986
  2. 2 Whether the period of disqualification should be 10 years or more

Ratio Decidendi

The respondent's deliberate and knowing breach of security conditions and dissipation of company assets to connected persons, with the aim of defeating creditors, constituted grave misconduct and a serious want of commercial probity, rendering him unfit to be concerned in the management of a company. A 10-year disqualification is necessary to mark the gravity of the conduct.

Court Disposition

petition granted

Orders

  • Respondent disqualified from acting as a director or being concerned in the management of a company for 10 years
  • Respondent found liable to the petitioner in the expenses of the application