''Re Sevenoaks Stationers (Retail) Ltd'' 991Ch 164 is a

UK company law The United Kingdom company law regulates corporations formed under the Companies Act 2006. Also governed by the Insolvency Act 1986, the UK Corporate Governance Code, European Union Directives and court cases, the company is the primary lega ...

case concerning the test of being unfit to run a company under the

Company Directors Disqualification Act 1986 The Company Directors Disqualification Act 19861986 c. 46 forms part of UK company law and sets out the procedures for company directors to be disqualified in certain cases of misconduct. History Lord Millett, in the opinion he gave in , summar ...

section 6.

Facts

Mr Cruddas was a chartered accountant and director of five insolvent companies, debt amounting to £600,000. He did not keep proper accounting records, failed to ensure annual returns were filed, and that annual accounts were prepared and audited, caused more debt when he knew of severe financial difficulty, traded while insolvent, did not pay the Crown debts for

PAYE A pay-as-you-earn tax (PAYE), or pay-as-you-go (PAYG) in Australia, is a withholding of taxes on income payments to employees. Amounts withheld are treated as advance payments of income tax due. They are refundable to the extent they exceed tax as ...

, NIC and VAT. Mr Cruddas had, though, remortgaged his house to raise money to pay creditors, losing over £200K. But he only paid creditors who pressed for it.

Judgment

Dillon LJ Sir George Brian Hugh Dillon (2 October 1925 – 22 June 2003) was a British lawyer and judge who served as a Lord Justice of Appeal from 1982 to 1994. Biography Dillon was born in a naval family, the son of Captain George Crozier Dillon, RN, ...

held that he was unfit to be concerned with management under the CDDA 1986 section 6. He noted that this was the first case of disqualification up to the Court of Appeal. In deciding how much of 15 years to disqualify, only serious cases, which may include someone who was already disqualified should be for ten years and above; for six to ten years are those who do not merit the top bracket and for two to five years, not very serious cases. 991Ch 164, 328 Here a five-year disqualification was appropriate.

Notes

{{reflist, 2

References

* United Kingdom company case law Court of Appeal (England and Wales) cases 1991 in case law 1991 in British law

Facts

Judgment

See also

Notes

References