LEXLAW Solicitors & Barristers
The High Court held that Paul and Joanne Rutter unlawfully reduced their directors’ loan account by £560,000 through a back-dated dividend and misapplied over £256,000 of company funds on their personal properties while Rut5 Ltd was approaching insolvency, breaching duties under the Companies Act 2006 and the Insolvency Act 1986.
The High Court ordered the former directors of Evershine Travel Limited (In Liquidation) to repay more than £1.4 million after treating company funds as their own and authorising unlawful dividends while the company faced a £17.58 million deficit to creditors. The case highlights the severe consequences for directors who breach duties owed under the Companies Act 2006 once a company approaches insolvency.
The High Court ordered Mr Steven Bell to repay substantial sums after causing BSS LED [R&D] Limited to enter into transactions at an undervalue and make preferential payments to connected companies, in breach of directors’ duties under the Companies Act 2006 and the Insolvency Act 1986.
The High Court held that Ronojoy Nag was liable for misfeasance and breach of fiduciary duty after diverting company assets during insolvency, while his wife Amanda Nag was found liable for dishonest assistance and knowing receipt, ordering both to account for misapplied funds.
The High Court, per Chief ICC Judge Briggs, held that Manolete Partners could not advance misfeasance claims under section 212 Insolvency Act 1986 via an Insolvency Application, and instead had to pursue them under CPR Part 7, ordering payment of the full Part 7 issue fee despite procedural arguments about hybrid claims brought in insolvency proceedings.
The High Court refused a summary judgment application by Sampson Coward LLP, a Salisbury-based law firm, over its handling of £2 million in escrow funds, allegedly misapplied while acting for connected parties, following assignment of the claims to litigation funder Manolete Partners.
The High Court ordered Dr Amir Matta, director of Saint George Investment Holdings Ltd, to repay £1.43 million after he misapplied company funds for personal expenses, breaching his statutory duties under the Companies Act 2006 and authorising unsubstantiated payments to connected parties during a period of financial distress.
If you’re facing liquidator legal action backed by Manolete Partners (or other litigation funders), expert legal representation is essential. We specialise in defending clients against such claims. Our expert team provides strategic legal support to counter aggressive tactics and ensure the most optimal outcome is achieved by you in your case.
The Court of Appeal upheld the High Court’s dismissal of Manolete Partners’ £849,278 claim against director Ebrahim Dalal, finding the evidence for alleged unreported sales too weak to meet the civil standard of proof. The case underscores the evidential challenges liquidators face when pursuing directors for purported accounting deficiencies.