Wednesday 9 October 2013

UK: England and Wales: connected parties and section 41 of the Companies Act 2006

Judgment was given earlier this month in Sargespace Ltd v Eustace [2013] EWHC 2944 (QB). Amongst the matters touched upon, in an application for summary judgment, was the scope of section 41 of the Companies Act 2006 in respect of persons connected with a director under sections 252 and 253. The trial judge stated (at para. [36]): "However ironic it may be that a director's transactions with his wife can be set aside [under section 41] but his transactions with his mistress or even his fiancĂ©e cannot if they do not live together, that is the line which Parliament has drawn".

No comments: