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Wood v Mistry, Disqualification of an IP under the CDDA86
The case is worth a read http://www.bailii.org/ew/cases/EWHC/Ch/2012/1899.html
In summary, a 12 year disqualification was handed down for a variety of improper payments from the liquidation. It also seems to have been for breaching SIP2.
Many areas of debate will arise from this case. Here are a few.
The case examines at length the payments to the referrer for "assisting in preparation of the statement of affairs" and the lack of justification for such payments. How common are these in our profession?
What could the "improper ulterior motive" be for bringing such proceedings if all other criteria are fulfilled?
What might constitute "A number of relatively minor breaches of duty could also, taken together, be thought serious enough to warrant a disqualification order." 3 fines from an RPB for instance? If you took out the payments to himself in this case, it seems that he still would have been disqualified.
Is it likely that future civil claims from claimants who fall within definition of s.16(2) CDDA 86 against IPs might attach a disqualification application as well? As with s.10 CDDA86, could the court start disqualifying on its own motion or that of any such claimant?
Does the reasoning in this case and the discussions about discretion under s.4 CDDA86 mean that, as only serious misconduct can be explored under this section, any successful actions under it will always be in the top bracket of length of disqualification?
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