Thursday, 16 January 2014

UK: England and Wales: section 1140 of the Companies Act 2006 creates 'parallel code'

Judgment was given a few days ago in Key Homes Bradford Ltd & Ors v Patel [2014] EWHC B1 (Ch). The decision is noteworthy because it the first to consider the operation of section 1140 ("Service of documents on directors, secretaries and others") of the Companies Act 2006. The trial judge held that section 1140 provided a basis for serving a director which was entirely outside the provisions for service in the Civil Procedure Rules: it created a "parallel code" (para. [25]). Moreover, the Companies Act 2006 created "[a] new regime for service of documents on directors ... intended to have a wide effect. It is not prima facie unfair that a director of an English company who resides abroad, but who gives an address for service in England, should be vulnerable to being served at that address as a choice, or a deemed choice, has been made" (para. [25]).

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