Her Majesty's Secretary for Trade and Industry v. Robert Mccartney [2002] ScotCS 114 (19th April, 2002)

The respondent's deliberate withdrawal of company funds after liquidation and responsibility for an unfair preference to a related company constituted serious misconduct and unfitness to be concerned in the management of a company under the Company Directors Disqualification Act 1986.

Citation: [2002] ScotCS 114
Parties: Petitioner: Her Majesty's Secretary of State for Trade and Industry; Respondent: Robert McCartney
Jurisdiction: Scotland
Procedural Posture: Petition for Disqualification Order / Judgment After Hearing
Outcome: petition granted
Legal Topics: Director Disqualification, Insolvency, Unfair Preference, Misapplication of Company Funds

Company Law Insolvency Law Director Disqualification Insolvency Unfair Preference Misapplication of Company Funds

Case Brief

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Parties

Her Majesty's Secretary of State for Trade and Industry

Petitioner

Robert McCartney

Respondent

Procedural Posture

Petition for Disqualification Order / Judgment After Hearing

Legal Issues

1 Whether the respondent's conduct as a director of IES rendered him unfit to be concerned in the management of a company under the Company Directors Disqualification Act 1986
2 Whether the respondent misapplied company funds after liquidation
3 Whether the respondent was responsible for an unfair preference under section 243 of the Insolvency Act 1986

Ratio Decidendi

Court Disposition

petition granted

Orders

Disqualification order made against the respondent for a period of four years from acting as a director.