Key Facts
- •Francis Oluwafisayo Falodun applied for permission to act as a director of V1CE Limited despite disqualification.
- •Falodun's disqualification stemmed from an undertaking related to inadequate accounting records at Switch Leisure Limited.
- •V1CE Limited is a successful company where Falodun plays a crucial role.
- •The Secretary of State raised concerns about non-disclosure and deficiencies in Falodun's evidence.
- •Falodun offered conditions to mitigate risks, including appointing a replacement director and ensuring compliance with accounting regulations.
Legal Principles
The court has discretion under section 17 of the Company Directors Disqualification Act 1986 to allow a disqualified person to be a director.
Rwamba v Secretary of State for Business, Energy, and Industrial Strategy [2020] EWHC 2778 (Ch)
The applicant must persuade the court that granting permission is appropriate, considering the nature and seriousness of past conduct, the length of disqualification, and the purposes of the disqualification order (protecting the public and deterrence).
Rwamba v Secretary of State for Business, Energy, and Industrial Strategy [2020] EWHC 2778 (Ch)
Companies Act 2006, s.386: Obligation to keep adequate accounting records.
Companies Act 2006
Companies Act 2006, s.387: Criminal offence for default in complying with s.386, unless acted honestly and default was excusable.
Companies Act 2006
Insolvency Act 1986, s.132(1): Duty to carry out investigations.
Insolvency Act 1986
Outcomes
Falodun's application for permission to act as a director was refused.
Falodun failed to disclose material information regarding the involvement of Mr. McDonald (the bookkeeper for both Switch and V1CE) in the inadequate record-keeping at Switch. This non-disclosure, combined with the serious nature of the previous misconduct and insufficient evidence to demonstrate that the risk of recurrence would be eliminated, meant Falodun failed to satisfy the burden of proof.