De facto directors and corporate directorships

Abstract

Examines the implications of the Supreme Court judgment in Revenue and Customs Commissioners v Holland, also known as Re Paycheck Services 3 Ltd, on whether a director of the corporate director of a number of companies that had paid out unlawful dividends was the 'de facto director' of these companies. Considers if corporate directorships should be abolished. Discusses the application of the Paycheck test of de facto directorship: (1) by the Court of Appeal in Re Mumtaz Properties Ltd, also known as Wetton v Ahmed; and (2) in relation to certain strict liability obligations. 'Abstract by Sweet & Maxwell' ( © 2013 Sweet & Maxwell)