UK: England and Wales: de facto directorship considered by Court of Appeal

Judgment was given yesterday by the Court of Appeal in Re Mumtaz Properties Ltd. [2011] EWCA Civ 610: see here. Lady Justice Arden delivered the only reasoned opinion (with which Aikens and Patten LJJ agreed). The principal issue before the court was whether the trial judge had erred in finding that an individual (Mr Zafar Ahmed) was a de facto director of the company. Arden LJ held that the judge had not erred and stated that Mr Ahmed was part of the company's corporate governance structure and "one of the nerve centres from which the activities of the Company radiated" (para. [47]).