Large award of damages and/or equitable compensation ordered against the perpetrators of a labour supply fraud (Umbrella Care Ltd v Nisa and ors) – Gatehouse Chambers

Posted January 10th, 2023 in chambers articles, company directors, compensation, damages, fraud, news, taxation by sally

‘Dispute Resolution analysis: A large award of damages and/or equitable compensation has been made against the directors and connected companies of a company which was used to perpetrate a large scale labour supply fraud against HMRC.’

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Gatehouse Chambers, 21st December 2022

Source: gatehouselaw.co.uk

Breach of trust, directors and corporate trustees: multiple derivative claims following McGaughey v USS – Wilberforce Chambers

‘It is commonplace now for the trustee of almost any sort of trust to be a company, and for the individuals who may colloquially be referred to as “the trustees” to in fact not be trustees at all, but to be the directors of the trustee company. Occupational pension schemes have been particularly keen adopters of this structure. In some respects it makes little difference to the beneficiaries: the trustee is the trustee, whether an individual or a company. But when the individuals involved are alleged to have acted in breach of their duties, the corporate structure allows for more complex claims than the ordinary breach of trust claim that would be brought against individual trustees.’

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Wilberforce Chambers, 20th December 2022

Source: www.wilberforce.co.uk

Supreme Court rules on creditor duty – Law Society’s Gazette

“The Supreme Court has handed down a significant judgment in BTI 2014 LLC v Sequana SA. It addresses the existence, substance and circumstances of the ‘creditor duty’ – the duty of company directors to consider or act in accordance with the interests of companies’ creditors in the context of prospective insolvency.”

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Law Society's Gazette, 14th October 2022

Source: www.lawgazette.co.uk

Supreme Court rules on directors duty to act in interests of creditors – OUT-LAW.com

‘Company directors need to remain wary of their duty to consider the interests of creditors in certain circumstances, despite a new UK Supreme Court ruling that they are likely to welcome, experts have said.’

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OUT-LAW.com, 10th October 2022

Source: www.pinsentmasons.com

New Judgment: BTI 2014 LLC v Sequana SA and others [2022] UKSC 25 – UKSC Blog

‘This appeal raised questions of considerable importance for company law. It provides the first opportunity for the Supreme Court to consider the existence, content and engagement of the so-called “creditor duty”: the alleged duty of company directors to consider, or to act in accordance with, the interests of the company’s creditors when the company becomes insolvent, or when it approaches, or is at real risk of, insolvency.’

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UKSC Blog, 5th October 2022

Source: ukscblog.com

Director was not personally liable for actions of a company – OUT-LAW.com

Posted September 13th, 2022 in company directors, misrepresentation, negligence, news by tracey

‘When a claimant sues a company, they often also bring a claim against senior management to ensure that there is a solvent defendant against which any judgment can be enforced.’

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OUT-LAW.com, 12th September 2022

Source: www.pinsentmasons.com

Ex-director given another chance to appeal eight-year-old ET judgment – Law Society’s Gazette

‘The High Court has granted more time for a former law firm director to challenge a coruscating judgment against her more than eight years after it was handed down.’

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Law Society's Gazette, 2nd September 2022

Source: www.lawgazette.co.uk

‘Utterly dishonest’ Axiom fund solicitor jailed for fraud – Law Society’s Gazette

Posted August 12th, 2022 in company directors, fraud, imprisonment, news, sentencing, solicitors by tracey

‘Astruck-off solicitor who dishonestly funnelled nearly £20m of investors’ money from a legal financing fund into his own pocket to fund a luxury lifestyle has been jailed for 14 years.’

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Law Society's Gazette, 12th August 2022

Source: www.legalfutures.co.uk

Lincoln Covid loan abuser gets 10-year business ban – BBC News

Posted August 8th, 2022 in company directors, coronavirus, insolvency, loans, news by tracey

‘A Lincoln student has been banned from running a company for 10 years after abusing a Covid recovery loan.’

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BBC News, 8th August 2022

Source: www.bbc.co.uk

English courts increasingly grappling with complex crypto disputes – OUT-LAW.com

Posted August 5th, 2022 in company directors, company law, cryptocurrencies, dispute resolution, news by tracey

‘The English courts have adapted quickly to increasingly complex disputes involving crypto assets, a legal expert has said, following a recent ruling in a dispute over the ownership of an account worth roughly £30 million.’

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OUT-LAW.com, 5th August 2022

Source: www.pinsentmasons.com

Unlocking the crypt: insolvency & cryptocurrency – New Law Journal

Posted July 13th, 2022 in bankruptcy, company directors, cryptocurrencies, insolvency, news by tracey

‘Despite the UK’s intention to be a global leader in cryptoassets, the courts are still wrestling with the basics: Rachel Coyle of 36 Commercial explains why it’s time to get to grips with the insolvency context.’

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New Law Journal, 8th July 2022

Source: www.newlawjournal.co.uk

Firm ordered to pay wasted costs over lack of authority to act – Legal Futures

‘A law firm has been ordered to pay wasted costs of £7,920 for not satisfying itself that the director of a company in deadlock with the other director had the authority to give it instructions.’

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Legal Futures, 5th July 2022

Source: www.legalfutures.co.uk

FCA investigates Wise co-founder after tax default – The Guardian

‘The UK’s financial regulator is investigating the co-founder of payments company Wise after he failed to pay his taxes.

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The Guardian, 27th June 2022

Source: www.theguardian.com

Co-owners jailed and firm fined £2m over deaths of workers in animal feed tanker – The Independent

‘A food waste recycling company has been fined £2 million and one of its co-owners jailed for 13 years after two workers died in a road haulage tanker containing pig feed.’

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The Independent, 16th June 2022

Source: www.independent.co.uk

Law Commission sets out options to Government for reforming how companies are convicted of criminal offences – Law Commission

Posted June 13th, 2022 in company directors, company law, criminal justice, Law Commission, news by tracey

‘The Law Commission has today published its options for the Government for how it can improve the law to ensure that corporations are effectively held to account for committing serious crimes.’

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Law Commission, 10th June 2022

Source: www.lawcom.gov.uk

Anti-money laundering proposals ‘uninspired and insipid’, say MPs – The Guardian

Posted June 10th, 2022 in company directors, company law, fraud, Law Commission, money laundering, news by sally

‘Law Commission proposals to make directors more accountable for economic crimes at the companies they oversee have been condemned as a “thundering disappointment”.’

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The Guardian, 10th June 2022

Source: www.theguardian.com

Case Comment: Crown Prosecution Service v Aquila Advisory Ltd [2021] UKSC 49 – UKSC Blog

‘In this post, Amy Wilkinson, a senior associate in CMS’ financial crime team, comments on the decision of the UK Supreme Court in Crown Prosecution Service v Aquila Advisory Ltd [2021] UKSC 49. On 3 November 2021, the Supreme Court unanimously dismissed the appeal and ruled in favour of Aquila Advisory Ltd. The decision concerns attribution of directors’ criminal actions and who should have priority over assets derived from their criminal schemes.’

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UKSC Blog, 4th May 2022

Source: ukscblog.com

UK businesses should be aware of a growing trend of climate change-based litigation according to one expert, after environmental law charity ClientEarth announced legal action against Shell – OUT-LAW.com

Posted March 22nd, 2022 in charities, climate change, company directors, derivative claims, energy, news by tracey

‘UK businesses should be aware of a growing trend of climate change-based litigation according to one expert, after environmental law charity ClientEarth announced legal action against Shell.’

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OUT-LAW.com, 18th March 2022

Source: www.pinsentmasons.com

The director of an English mobile phone company, now in liquidation, has been held liable for both fraudulent trading and misfeasance for participation in missing trader intra-community (MTIC) VAT fraud. – OUT-LAW.com

‘The High Court upheld an application made by the liquidator of JD Group Ltd (“the company”) claiming that Deepak Bhatia, the company director, was engaged in fraudulent trading owing to knowledge that the company was associated with VAT fraud. Judge Agnello QC found that the manner in which the respective transactions were carried out provided clear evidence of this knowledge and that Bhatia’s conduct was dishonest in accordance with the objective standards of ordinary decent people.’

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OUT-LAW.com, 3rd March 2022

Source: www.pinsentmasons.com

Wrongly convicted Post Office workers say former bosses should face jail – The Guardian

‘Former Post Office workers who were among those wrongfully convicted for theft, fraud and false accounting have called for the company’s former management to go to jail for their part in the long-running scandal.’

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The Guardian, 15th February 2022

Source: www.theguardian.com