In re Discovery Yachts Ltd

Subject Matter

COMPANY — Director — Personal liability — Defendant contravening rule against director of company in insolvent liquidation being involved in management of another company with similar name — Contravention of rule making defendant personally responsible for company’s debts “incurred” during period of contravention — Court ordering company to pay damages in relation to contract entered into prior to period of defendant’s contravention but breached during it — Whether defendant automatically personally responsible for judgment debt even though not party to breach of contract claim — Whether necessary for creditor to bring separate proceedings against defendant — Whether company’s liability under contract incurred during period of contravention — Insolvency Act 1986 (c 45), ss 216, 217

[2021] EWHC 2475 (Ch); [2021] Bus LR 1422; [2021] WLR(D) 491, Ch D

COMPANY — Director — Personal liability — Director contravening rule against director of company in insolvent liquidation being involved in management of another company with similar name — Contravention of rule making director personally responsible for company’s debts “incurred” during period of contravention — Court ordering company to pay damages in relation to contract entered into prior to period of director’s contravention but breached during it — Whether director automatically personally responsible for judgment debt even though not party to breach of contract claim — Whether company’s liability under contract incurred when breached or when entered into — Insolvency Act 1986 (c 45), ss 216, 217

[2022] EWCA Civ 1319; [2022] Bus LR 1244; [2023] 4 All ER 576; [2023] 1 BCLC 333; [2022] WLR(D) 396, CA

Appellate History