The test for getting an imaging order – Blackstone Chambers

‘In TBD (which was covered in the article by Niran de Silva KC and Sam Neaman in the April 2024 edition of ELA Briefing), the Court of Appeal approved the use of imaging orders (an order that requires a defendant to permit a forensic computer expert to make a complete copy of their electronic devices) as a less intrusive alternative to a search order (an order that requires a defendant to allow the claimant’s representatives to enter their premises and search for, copy and remove documents). Since then, there has been some debate over the relevant threshold for granting an imaging order, with a degree of inconsistency appearing in the authorities. In the recently published judgment of Nix, HH Judge Pelling KC expressed support for the view that the grounds for granting an imaging order are slightly less stringent than for granting a search order. He also identified the factors that are likely to be most relevant to obtaining an imaging order where the complaint is of unacceptable conduct in relation to disclosure and/or the preservation of documents.’

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Blackstone Chambers, 7th February 2025

Source: www.employeecompetition.com

Director and law firm fined £50,000 for multiple compliance failures – Legal Futures

Posted February 3rd, 2025 in accounts, company directors, fines, law firms, money laundering, news, solicitors by tracey

‘The director of a law firm and the firm itself have each been fined £25,000 for a series of compliance failures, including widespread accounts rule breaches and anti-money laundering (AML) shortcomings.’

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Legal Futures, 3rd February 2025

Source: www.legalfutures.co.uk

Directors duties after the BHS decisions – Gatehouse Chambers

Posted January 23rd, 2025 in chambers articles, company directors, insolvency, news by sally

‘In March 2015, BHS was sold for to Retail Acquisition Limited for the princely sum of just £1. Dominic Chappell (a thrice bankrupt former racing driver with no experience in retail) and his fellow directors took the helm of the struggling group. A little over a year later, in April 2016, BHS collapsed into administration and later insolvent liquidation by which point the net deficiency was a staggering £1.3 billion).’

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Gatehouse Chambers, 18th December 2025

Source: gatehouselaw.co.uk

Changes to payment practices and performance reporting for large businesses – OUT-LAW.com

‘Large businesses in the UK preparing for the 2024-25 reporting season will need to be aware of the latest changes to the payment practices and performance reporting requirements.’

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OUT-LAW.com, 29th November 2024

Source: www.pinsentmasons.com

Judgment in FT application for non-party access to documents – 5RB

‘On 28 June 2024, ICC Judge Mullen, sitting in the Chancery Division, gave an ex tempore judgment, partially granting the Financial Times’ application for pre-hearing access to an affidavit which the Secretary of State had lodged in support of its directors disqualification claim against the financier Lex Greensill.’

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5RB, 10th October 2024

Source: www.5rb.com

Company boss banned over £145k Covid support claims – BBC News

Posted September 4th, 2024 in company directors, coronavirus, disqualification, insolvency, loans, news by tracey

‘A businessman has been banned from being a company director after making bogus claims for £145,000 in Covid-19 support grants.’

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BBC News, 3rd September 2024

Source: www.bbc.co.uk

BHS, a case of misfeasant trading – Mills & Reeve

Posted August 14th, 2024 in chambers articles, company directors, company law, insolvency, misfeasance, news by sally

‘In a lengthy judgment the Court has ordered that former directors of BHS are to pay sums arising in both wrongful trading and in “trading” misfeasance.’

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Mills & Reeve, 13th August 2024

Source: www.mills-reeve.com

Increasing director accountability: The new Audit Reform and Corporate Governance Bill – Kingsley Napley Corporate and Commercial Law Blog

Posted August 7th, 2024 in auditors, bills, chambers articles, company directors, company law, news by sally

‘Last month, King Charles III opened the first session of the new parliament by outlining the Labour government’s priorities. Among these was the much-anticipated draft Audit Reform and Corporate Governance Bill. It has been six years since Sir John Kingman delivered his independent review of the Financial Reporting Council (FRC), and the call for robust audit reform has remained strong.’

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Kingsley Napley Corporate and Commercial Law Blog, 5th August 2024

Source: www.kingsleynapley.co.uk

Chohan v Ved and others [2024] EWHC 739 (Ch) – Gatehouse Chambers

‘Mr Chohan and Mr Ved knew each other from childhood. From 2008 Mr Ved ran his accountancy business, Sterling Associates, from part of the premises comprising 5TC pursuant to a series of licence agreements with the then tenant of 5TC, Eutopia Ltd (“Eutopia”).’

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Gatehouse Chambers, 28th May 2024

Source: gatehouselaw.co.uk

Two former BHS directors ordered to pay at least £18m over wrongful trading – The Guardian

Posted June 12th, 2024 in company directors, insolvency, liquidators, misfeasance, news, pensions by sally

‘Two former directors of the collapsed department store chain BHS have been ordered to pay at least £18m after the pair were found liable for wrongful trading and breaching their corporate duties.’

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The Guardian, 11th June 2024

Source: www.theguardian.com

Limits on director liability for trade mark infringement confirmed in the UK – OUT-LAW.com

‘Directors of companies that infringe trade marks can only be held personally liable as an accessory to that infringement in the UK if they know that what their company was doing amounted to trade mark infringement, the UK’s highest court has confirmed.’

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OUT-LAW.com, 15th May 2024

Source: www.pinsentmasons.com

The Pursuit of Corporate Accountability: Climate Change Litigation and the Use of Shareholder Derivative Actions – Cambridge Law Journal

‘ClientTEarth v Shell [2023] EWHC 1897 (Ch) is the first attempt to use the statutory shareholder derivative action (Part 11 Chapter 1 of the Companies Act 2006 (CA 2006)) to hold directors liable for breach of directors’ duties for issues related to climate change. A derivative action can be used by shareholders in limited circumstances to bring an action of recourse on behalf of the company. Derivative actions are typically used to protect minority shareholders. Therefore, its use in ClientEarth v Shell is of interest, especially considering the ongoing discussion on the role and purpose of business in society. Although company law has primarily focused on profits, the more modern view is that companies should exist for profit, public interests and societal goals (See British Academy, Reforming Business for the 21 st Century: A Framework for the Future of the Corporation). The ClientEarth case confirms and clarifies situations in which a claimant may obtain permission to continue a claim; and when an absolute liability may be imposed on directors for a climate change-related breach of director’s duty in shareholder derivative claims. It raises questions around the prospects of success for future claimants due to the difficulty in establishing sufficient legal merit; and the relationship between stage one and stage two of the statutory regime.’

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Cambridge Law Journal, 3rd April 2024

Source: www.cambridge.org

The Pursuit of Corporate Accountability: Climate Change Litigation and the Use of Shareholder Derivative Actions – The Cambridge Law Journal

‘ClientEarth v Shell [2023] EWHC 1897 (Ch) is the first attempt to use the statutory shareholder derivative action (Part 11 Chapter 1 of the Companies Act 2006 (CA 2006)) to hold directors liable for breach of directors’ duties for issues related to climate change. A derivative action can be used by shareholders in limited circumstances to bring an action of recourse on behalf of the company. Derivative actions are typically used to protect minority shareholders. Therefore, its use in ClientEarth v Shell is of interest, especially considering the ongoing discussion on the role and purpose of business in society. Although company law has primarily focused on profits, the more modern view is that companies should exist for profit, public interests and societal goals (See British Academy, Reforming Business for the 21 st Century: A Framework for the Future of the Corporation). The ClientEarth case confirms and clarifies situations in which a claimant may obtain permission to continue a claim; and when an absolute liability may be imposed on directors for a climate change-related breach of director’s duty in shareholder derivative claims. It raises questions around the prospects of success for future claimants due to the difficulty in establishing sufficient legal merit; and the relationship between stage one and stage two of the statutory regime.’

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The Cambridge Law Journal, 3rd April 2024

Source: www.cambridge.org

Company fined £450,000 and director and site manager sentenced following death of labourer – Crown Prosecution Service

‘A company has been fined £450,000 and the firm’s director has received a suspended prison sentence after a labourer was crushed to death at a construction site.’

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Crown Prosecution Service, 15th February 2024

Source: www.cps.gov.uk

Water bosses in England and Wales face bonus bans for illegal sewage discharges – The Guardian

‘Ministers are to ban bonuses for water company bosses in England and Wales who fail to prevent illegal sewage spills that pollute rivers, lakes and seas.’

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The Guardian, 11th February 2024

Source: www.theguardian.com

Research Briefing: Football governance – time for change? – House of Commons Library

Posted February 7th, 2024 in company directors, news, parliament, sport by tracey

‘This Briefing looks at plans to legislate for an independent regulator for English football.’

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House of Commons Library , 6th February 2024

Source: commonslibrary.parliament.uk

Pizza boss banned for hiring two illegal workers – BBC News

Posted January 30th, 2024 in company directors, disqualification, employment, fines, immigration, news by tracey

‘A pizzeria owner from Cumbria who hired two illegal workers has been banned from being a company director for six years.’

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BBC News, 30th January 2024

Source: www.bbc.co.uk

Were lawyers complicit in Post Office’s corporate governance failures? – Legal Futures

‘A solicitor who acted for three wrongly convicted sub-postmasters has questioned whether lawyers advising the Post Office’s board were more motivated by continuing the retainers than giving proper guidance.’

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Legal Futures, 8th January 2024

Source: www.legalfutures.co.uk

Managing corporate crime risk under the Economic Crime and Corporate Transparency Act 2023 – OUT-LAW.com

Posted December 11th, 2023 in company directors, company law, fraud, news by tracey

‘The UK’s Economic Crime and Corporate Transparency Act 2023 (the Act) has reformed the law of corporate criminal attribution for a wide range of economic crimes and introduced a new offence of corporate failure to prevent economic crimes.’

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OUT-LAW.com, 8th December 2023

Source: www.pinsentmasons.com

High Court strikes out top footballer’s negligence claim against law firm – Legal Futures

Posted December 4th, 2023 in causation, company directors, damages, law firms, loans, negligence, news by tracey

‘The High Court has struck out a £6m negligence claim brought by a former Premier League footballer against City firm Charles Russell Speechleys (CRS).’

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Legal Futures, 4th December 2023

Source: www.legalfutures.co.uk