Suky Mann, assisted by Kate Woodhouse, was instructed by a director in connection with a director disqualification investigation which started following the liquidation of their business.
The allegations centred on a breach of the eligibility criteria in applying for the COVID-19 government-backed funding, and the alleged misuse of those funds once received.
The challenge
The solicitors for the Insolvency Service alleged that the director had unlawfully overstated the company’s turnover on the bounce-back loan application and had further misused the funds, suggesting the director's conduct warranted a disqualification period of between 9 and 12 years.
Suky and Kate undertook a detailed review of the documentation. They identified that the investigators were applying an alternative interpretation of the eligibility criteria and the wording of the application form itself. Suky and Kate argued that the Insolvency Service was effectively changing the perimeters of the eligibility criteria post-event, an approach that was at complete odds with the Secretary of State’s duty of fairness.
As to the alleged misuse of funds, Suky and Kate reviewed the specific facts of the matter, as applied to the director's specific circumstances, experience, and intent, alongside the broader commercial pressures and the limited options available to the director at the time the loan was obtained.
The Insolvency Service ultimately concluded that it would not be in the public interest to pursue disqualification proceedings.
A disqualification would have had a devastating effect on our client’s ability to continue their career and maintain their directorship of another business, making the successful outcome all the more significant.
“I can’t recommend Suky highly enough. With the support of Kate, they both helped me win a case that truly felt like it was against all odds. From the start, they were professional, supportive, and completely honest about my situation, giving realistic advice at every stage.
“Their communication was excellent; clear, timely, and easy to understand which made a stressful process much more manageable. They showed me all of the qualities you want in great solicitors: attention to detail, strong knowledge, integrity, patience, and genuine care for me as their client. I always felt listened to and well represented.
“I’m incredibly grateful for their hard work and dedication, and I wouldn’t hesitate to recommend them to anyone needing legal support"
A satisfied client
Higgs’ perspective
The above case is another example of the impact of having experienced solicitors on board. Each case turns on its own facts, and every case requires a tailored approach, but our aim is always the same: to get the best outcome possible.
