Ten Bobsworth wrote:Carry on like this, Sluffy, and I'm going to have to enrol you on an intensive course with Judge Judy.
You haven't got your 'listening ears' on and haven't got your 'thinking head' on either.
BWFC was insolvent, couldn't pay its debts on time and, losing £100K per week, couldn't trade out of the
situation. It wasn't marginal, equivocal, uncertain, foggy, confusing, nebulous, misty, hazy. It was as plain as the plainest pikestaff.
The only legal justification for continuing in business was to try to raise more capital to turn insolvency into solvency. That's what Ken Anderson was trying to do and it didn't work for him just as it hadn't worked for Eddie over all the years he tried.
Isn't that, put more bluntly admittedly, what I said?
"If you fear that your company has reached an insolvent position, you must tread very carefully. Insolvency is when you are unable to pay bills as they fall due, or when the total of company liabilities exceeds the total value of assets held.
Trading while knowingly insolvent may lead to accusations of wrongful trading, or the more serious charge of fraudulent trading if you are thought to have deliberately attempted to deny creditors what they are owed.
Both wrongful trading and fraudulent trading are offences under the Insolvency Act 1986 and the Companies Act 2006. Wrongful trading is a civil offence, while fraudulent trading is a criminal offence.
It is incumbent on a director to be aware of their company’s financial position at all times, and putting forward a defence that you were unaware of the insolvent situation will carry little weight. Failing to realise that a company is in financial difficulties may be regarded as negligent, irresponsible, or proof of ‘unfit conduct’ of directors, which will add to the seriousness of the situation".
[You must be registered and logged in to see this link.]From my point of view he went down the 'wrongful trading' path -
"Directors have an obligation to inform company shareholders when an insolvent position has been reached, and to seek the guidance of a licensed Insolvency Practitioner.
Although directors may have carried on trading with good intentions in order to ultimately guide the company out of trouble, they have a duty to put creditors’ interests first when insolvency strikes and to limit creditors’ exposure to additional debt. In many cases this will mean the company should cease trading immediately, however, there are certain exceptions to this such as if the company is midway through a lucrative contract which will bring in more money to the business than it will cost to complete.
The rules surrounding this are complex and fraught with complications therefore professional insolvency advice should be taken as a matter of urgency".
Otherwise as you so clearly put it he would had to notify ALL the shareholders that the company was insolvent and although he owned most of the shares there were others owning on paper at least just over 5% of it - and they were certainly never notified (not knowingly anyway!).
He either had to admit that the club WAS insolvent at the time it became so - let's for argument sake say it was before the Doidge transfer OR he had to trade in probably a 'wrongful trading' situation justifying his actions as in the best interests of the club in that, presumably, he was in the process of selling it?
As he didn't declare to the shareholders the club was insolvent then in his eyes, and presumably the Administrators afterwards who up to now have taken no action against him / nor Companies House either - have deemed it to not have been - despite the clear evidence you present.
I don't disagree with your facts or even your conclusions but actual events haven't confirmed that was the case so 'officially' and until we learn something contrary in the future, the record books will show that it wasn't.
So I believe I've been actually saying the same as you but in a more, shall we say, sugar coated way.
I've always had a thirst for learning and would go back to school to learn more any day. I'm not sure Judge Judy, Judge Rinder or Judge Romesh would be right for me but I think I would find Judge David Attenborough, Judge Maggie Aderin-Pocock and Judge Jim Al-Khalili much more of a personal interest, although I doubt their specialisms are about company insolvencies!
I would have my listening ears and thinking head on though.
I'd invite you to attend with me, I'm sure neither one of us are past learning something new.