Directors personally liable for invalid solvency statement and breach of duty – OUT-LAW.com

Posted May 23rd, 2018 in banking, company directors, insolvency, news by tracey

‘A solvency statement was found to be invalid, a reduction in capital and distribution unlawful and three directors in breach of their duties after a corporate reorganisation left a company unable to meet its liabilities, the High Court has ruled.’

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OUT-LAW.com, 22nd May 2018

Source: www.out-law.com

Pair were shadow directors but didn’t breach duties, says court – OUT-LAW.com

Posted May 9th, 2018 in company directors, fiduciary duty, news by tracey

‘Two men were found to be shadow directors of an insolvent property development company and so did owe the company fiduciary duties but their behaviour did not breach those duties, the High Court has ruled.’

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OUT-LAW.com, 8th May 2018

Source: www.out-law.com

Bribery conviction could indicate hard line on new tax evasion offence – OUT-LAW.com

Posted April 27th, 2018 in bribery, company directors, news, tax evasion by tracey

‘The conviction of a company and the jailing of two former company directors for offences under the UK Bribery Act should serve as a warning to businesses over a new tax evasion corporate offence, according to a tax law expert.’

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OUT-LAW.com, 27th April 2018

Source: www.out-law.com

Insurer diversity rules take effect in the UK – OUT-LAW.com

Posted April 18th, 2018 in company directors, diversity, insurance, news by sally

‘Major insurers in the UK must “consider a broad set of qualities and competencies” when recruiting board members, and have a policy in place to promote board diversity, under new rules that came into effect on 9 April.’

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OUT-LAW.com, 16th April 2018

Source: www.out-law.com

Ex-BHS owner Dominic Chappell to sue Sir Philip Green – Daily Telegraph

Posted April 9th, 2018 in company directors, insolvency, news, pensions by tracey

‘Former BHS owner Dominic ­Chappell plans to sue Sir Philip Green and contest a proposed boardroom ban in a bid to repair his “tarnished ­reputation” and resurrect his career.’

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Daily Telegraph, 9th April 2018

Source: www.telegraph.co.uk

Former BHS owner Chappell faces boardroom ban but Sir Philip Green escapes sanction over collapse – Daily Telegraph

Posted March 28th, 2018 in company directors, financial regulation, insolvency, news, pensions, sanctions by tracey

‘Former BHS owner Dominic Chappell will be banned from serving as company director for up to 15 years over his role in the the high street chain’s collapse, while its previous owner Sir Philip Green will escape any sanction. The Insolvency Service said that the retail mogul Sir Philip, who sold BHS to thrice bankrupt Mr Chappell little over a year before its demise for £1, will not face further action.’

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Daily Telegraph, 27th March 2018

Source: www.telegraph.co.uk

Supreme Court: use of corporate vehicles did not avoid limitation exception – OUT-LAW.com

‘Company directors were said to be responsible for assets despite their use of corporate vehicles, the Supreme Court has ruled (12-page / 157KB PDF). The ruling means that a six year limitation period stopping liquidators taking legal action against the directors does not apply. This case will impact future misfeasance actions. Director and officer indemnity insurers should take note of this decision as it confirms that the English courts are unwilling to accept the six-year limitation defence for actions against directors following the disposal of company assets in breach of fiduciary duty for economic gain.’

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OUT-LAW.com, 23rd March 2018

Source: www.out-law.com

Burns v Financial Conduct Authority [2017] EWCA Civ 214: a sign of things to come? – 4 New Square

Posted February 2nd, 2018 in company directors, costs, enforcement, financial regulation, news by sally

‘Directors’ duties, procedural fairness and issue based costs; the Court of Appeal decision sheds light on several aspects of financial regulatory enforcement action.’

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4 New Square, 15th January 2018

Source: www.4newsquare.com

PPI firm fined £350,000 for making 75 million spam calls in four months – The Independent

‘A PPI company that made 75 million nuisance calls in just four months has been fined £350,000 by the Information Commissioner’s Office. The director of Miss-sold Products UK Ltd will not face any punishment despite the company he ran “blatantly ignoring the law” because of shortcomings in existing legislation, the ICO said on Wednesday.’

Full Story

The Independent, 17th January 2018

Source: www.independent.co.uk

Proposed reforms to the UK Corporate Governance Code from 1 January 2019 – OUT-LAW.com

Posted December 19th, 2017 in codes of practice, company directors, company law, financial regulation, news by sally

‘A revised UK Corporate Governance Code, intended by the Financial Reporting Council (FRC) to be “shorter and sharper” and to restore public trust in business, is due to come into force for accounting periods beginning 1 January 2019’

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OUT-LAW.com, 18th December 2017

Source: www.out-law.com

Reinforcing the Veil – Defending Cases Where the Corporate Veil is Threatened – Drystone Chambers

Posted December 8th, 2017 in company directors, company law, confiscation, news, Supreme Court by sally

‘“The corporate veil” is a much discussed, but much misunderstood phrase. When Lord Halsbury LC stated in Salomon v A Salomon and Co Ltd [1897] AC 22 that a limited liability company was to be viewed ‘like any other independent person with its rights and liabilities appropriate to itself’ he imbedded in law the idea of corporations having a separate legal identity from their directors. That principle is agreed. What has been in dispute, and is still uncertain to a degree, is when that separation can be made. ‘

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Drystone Chambers, 4th December 2017

Source: drystone.com

World-leading package of corporate governance reforms announced to increase boardroom accountability and enhance trust in business – Department for Business, Energy & Industrial Strategy

Posted August 29th, 2017 in bills, company directors, company law, press releases, remuneration by tracey

‘Business Secretary Greg Clark has set out the government’s corporate governance reforms to enhance the public’s trust in business.’

Full press release

Source: www.gov.uk/government/organisations/department-for-business-energy-and-industrial-strategy

Government attacked over new laws on excessive ‘fat cat’ pay – The Independent

Posted August 29th, 2017 in company directors, company law, news, remuneration by tracey

‘Critics rounded on the Government today as it published the full detail of new laws aimed at cracking down on excessive boardroom pay.’

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The Independent, 29th August 2017

Source: www.independent.co.uk

Golf firm boss jailed for manslaughter over ball collector’s lake death – The Guardian

‘A golf company director has been jailed over the manslaughter of a man with learning difficulties who drowned as he dived for lost balls in a cold, murky course lake.’

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The Guardian, 10th July 2017

Source: www.theguardian.com

Watson and others v Watchfinder.co.uk Ltd – WLR Daily

Posted June 1st, 2017 in agreements, company directors, consent, contracts, law reports, shareholders by sally

Watson and others v Watchfinder.co.uk Ltd [2017] EWHC 1275 (Comm)

‘The claimants were directors and shareholders of a business development consultancy whose services the defendant company retained to assist it in attracting investors. At the same time, the defendant entered into a share option agreement with the claimants on terms which, as later amended, provided for the claimants to purchase a certain percentage of the defendant’s issued share capital at a given price, but also provided that the option could not be exercised without the consent of a majority of the defendant’s board of directors. The claimants later sought to exercise the option but consent was refused. The claimants brought proceedings for specific performance of the share option agreement, contending that, as a matter of construction of that agreement or by way of an implied term, the defendant could not exercise its discretion over the grant of consent in a way that was arbitrary, capricious or irrational.’

WLR Daily, 25th May 2017

Source: www.iclr.co.uk

Company directors jailed following fatal roof fall – Crown Prosecution Service

‘Three company directors have been jailed today (May 19) following the death of a man who fell while working at a warehouse in Essex.’

Full press release

Crown Prosecution Service, 19th May 2017

Source: www.cps.gov.uk

Employees, Directors & the Futures Path of Corporate Governance Reform – Littleton Chambers

‘Shortly before the calling of a General Election the Business and Enterprise Select Committee of the House of Commons published a report on corporate governance. As the report’s reception and subsequent comment have made clear, whatever the outcome of the election the framework set by the report is likely to determine the direction of future corporate governance reform.’

Full story

Littleton Chambers, 9th May 2017

Source: www.littletonchambers.com

Dominic Chappell to fight legal action forcing him to pay BHS pensions – The Guardian

Posted March 2nd, 2017 in company directors, enforcement, news, pensions by sally

‘Dominic Chappell, the last owner of BHS, has pledged to fight legal action by the Pensions Regulator designed to force him to pay millions of pounds into the failed retailer’s pension scheme, saying the black hole in the scheme was not his fault.’

Full story

The Guardian, 1st March 2017

Source: www.guardian.co.uk

Directors could face ‘disciplinary action’ for financial reporting breaches, under FRC plans -OUT-LAW.com

‘Company directors could face “disciplinary action” over breaches of financial reporting rules under new plans announced by the Financial Reporting Council (FRC).’

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OUT-LAW.com, 17th February 2017

Source: www.out-law.com

UK bosses face tougher punishments over corporate pay rules – The Guardian

Posted February 16th, 2017 in company directors, consultations, financial regulation, fines, news by sally

‘Boardroom bosses face tougher punishments when they break financial reporting rules under proposals being submitted to the government by the body which polices corporate behaviour.’

Full story

The Guardian, 16th February 2017

Source: www.guardian.co.uk