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Max Lowry
Max Lowry, Advocate
Category: UK Law
Satisfied Customers: 1392
Experience:  LLB, 10 years post qualification experience
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I have a court order preventing a director deliberately taking

Resolved Question:

I have a court order preventing a director deliberately taking action that will result in a company being struck off, if he does so he is in contempt of court. He has taken down the website for the company and is refusing to follow up on contracts

What do I do to enforce the court order?.
Submitted: 1 year ago.
Category: UK Law
Expert:  Max Lowry replied 1 year ago.

Max Lowry :

Hi, welcome to Just Answer. I will help you with your question.

Max Lowry :

If the Court order prevents the action being taken, then yes, to take that action is likely to be in contempt of court.

Max Lowry :

However, it is often possible to agree variations to an order (including an injunction) which the Court would just "rubber stamp" to allow things to be done.

Max Lowry :

In fact, some orders do provide that the parties can agree to variations in writing, so you'd need to check what your particular order actually says.

Customer:

There is nothing about variations, the order was issued following another one regarding disposal of shares. The background is a shareholder (my husband) during a divorce proceedings sort to protect his shares by putting them into a trust with the other director as trustee. The shares were to be returned once the financial settlement was agreed. We have since reconciled but the other director is refusing to return the shares and he then threatened to wind up the company (with the shares he holds in the trust he claims to have a majority) there is a contract worth millions and he is also trying to divert this to a new company

Customer:

The shares represent 45% of the company

Max Lowry :

Okay. Well, if he would be in breach of the order by returning them, then I get why he wouldn't do it. but you can make an application to the Court to revoke the existing order, or you can confirm in writing to the other person that you will take no action in relation to what he would consider to be a breach of the order from transferring the shares. The confirmation should do, but he may hide behind the order, meaning you need to apply to the Court.

Customer:

He is in breach if he disposes of them to anyone else

Max Lowry :

And transfer to his new company is a different thing, and would be in breach of his duties to this company as a director he is not allowed to do this - he must act in the best interests of this company.

Max Lowry :

And not to you... then he should be able to transfer.

Customer:

He is refusing to return the shares to my husband as he says my husband owes him money- yet he is alos refusing to pay my husband his salary

Max Lowry :

Okay - so do you understand what you are likely to have to do concerning the order? Do you want me to focus on the salary from the company/transferring work?

Max Lowry :

Would he be in contempt of Court if he let it get struck off?

Customer:

He is forbidden to take steps that would lead to the striking off of the company at companied house, yet he has taken down the website, has filed accounts that make the company look insolvent and is refusing to follow up on contracts. My husband was the founder of the company, the defendant was brought in as an investor

Customer:

Full Size Image

Customer:

Full Size Image

Customer:

Not sure if you can read the extracts

Customer:

The orders were from reading county court

Max Lowry :

I see - I see - see - so you're looking for a way to enforce that order.

Max Lowry :

so you're looking for a way to enforce that order and apply the contempt sanctions?

Customer:

yes

Max Lowry :

Okay - then you need to engage proceedings under CPR Part 81.

Customer:

we want to give him a shock so he stops playing silly fools and gives the shares back-but then he will be dismissed

Max Lowry :

You have to complete N244 and attach a witness statement saying why he has breached the order etc. and that ou wish him to face sanctions for contempt of court.

Max Lowry :

You can withdraw your application later if you want to - or deal with it by consent - but when he receives this, which is effectively you asking for him to be sent to prison, I expect he will promptly stop playing silly fools!

Max Lowry :

Not many people enjoy a spell at HM's pleasure.

Customer:

okay that makes sense, we have a statement from the web designer saying he told her to take the site down and that he would be back with a new company soon

Max Lowry :

Oh dear. He is being silly by the sounds of it.

Max Lowry :

Well, I expect this application will do the trick! Have a look at CPR Part 81 too, whch sets out the rules in detail for you to follow: http://www.justice.gov.uk/courts/procedure-rules/civil/rules/part-81-applications-and-proceedings-in-relation-to-contempt-of-court

Max Lowry :

Does this answer your question?

Customer:

I will look at the link, thanks

Max Lowry :

Thank you. Come back to me if you need more info. Please remember rate the answer as highly as you can for me

Max Lowry, Advocate
Category: UK Law
Satisfied Customers: 1392
Experience: LLB, 10 years post qualification experience
Max Lowry and other UK Law Specialists are ready to help you

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