Businessmen must personally honour company’s loan repayment
August 4th 2022Two businessmen have been told they are liable to repay a business loan even though the money was paid into their company’s account. Sam Lyon Head of Corporate & Commercial reports on this recent case. The businessmen owned the company, which was in financial difficulties. They asked an associate to lend them £50,000, without stating if the loan would be made to the company or them personally. The loan agreement was drafted and…
Liquidator fails to prove that businessman was a shadow director
April 4th 2022A liquidator has failed to prove that a businessman had acted as a shadow director of a company and was therefore liable for paying compensation for breaches of duty. Sam Lyon Head of Corporate & Commercial reports on this recent case. The case involved three related companies in liquidation. The liquidator brought claims against a director of one of the companies for alleged breaches of his duties, and for declarations that certain payments…
Director liable for £1.2 million over sale of insolvent company
March 10th 2022A director who sold a company when it was insolvent and diverted a significant amount of the proceeds to himself and his wife rather than paying the company’s creditors was liable for repaying £1.2 million. Sam Lyon Head of Corporate & Commercial reports on this recent case. The wife was also held liable. The company’s liquidator brought the claim of misfeasance against the director and a claim of dishonest assistance and…
Court outlines what constitutes a business partnership in law
February 2nd 2022The High Court has outlined what constitutes a business partnership in law following a dispute between a couple who ran a business together. Sam Lyon, Head of Corporate & Commercial, reports on this recent case. The case involved Ms Burnett and Mr Barker. Barker had set up a business as a sole trader offering fire safety services at events. Burnett was working for a company that dealt with administration, invoicing and…
Supplier can’t use force majeure to avoid repaying customer
January 18th 2022A supplier has failed in its bid to use a force majeure event as a reason to avoid repaying a customer after it failed to fulfil a contract. Sam Lyon, Head of Corporate & Commercial, reports on this recent case. The issue arose after the two parties entered into a contract in February 2019 for the supply of sulphur diesel. In accordance with the contract, the buyer made a significant advance…
2022 – The Year of Opportunity
December 10th 2021As we near the end of 2021, a time when many of us will reflect on another challenging year, we would like to share a message of hope and positivity for 2022. The UK economy is in good shape. Despite the doom and gloom in the news, there are many positive signs, including: We have the world’s 5th largest economy. We are the world’s 8th largest manufacturer; and We are…
Phone supplier not entitled to enforce onerous contract term
December 9th 2021A phone supplier has been told it cannot enforce a cancellation clause in a contract with a customer because the terms are “too onerous”. Sam Lyon Head of Corporate & Commercial reports on this recent case. The case involved Blu-Sky Solutions Ltd and Be Caring Ltd. Be Caring, a social care provider, had a contract for a mobile network service (MNS) to provide mobile telephone handsets for its staff. It was…
Directors’ phone conversation amounted to binding agreement
December 1st 2021The High Court has ruled that a telephone conversation between the managing directors of two companies amounted to a binding agreement and had to honoured. Sam Lyon Head of Corporate & Commercial reports on this recent case. The case involved Mansion Place Ltd v Fox Industrial Services Ltd. Mansion had engaged Fox to refurbish and extend student accommodation. There were delays in the performance of the works. Fox said they were…
Directors didn’t breach duties when paying themselves £1.2m
November 8th 2021Two directors did not breach their legal duties when they paid themselves a total of £1.2m from their failing company. Sam Lyon Head of Corporate & Commercial reports on this recent case. That was the decision of the High Court in a case involving, Brookmann Home Ltd (In Liquidation). The company had been formed as a vehicle to purchase a textile business. Most of the purchase price was raised from money…
Consultants entitled to £212k fee because of implied contract term
September 28th 2021A firm of consultants were entitled to a large fee for introducing a client to an insurance company even thought there was no specific contract. The law allowed for a fair payment to be implied in the business agreement. Sam Lyon Head of Corporate & Commercial reports on this recent case. That was the decision of the High Court in a case involving Premia Marketing Ltd v Regis Mutual Management…
