Tuesday, 28 January 2014

Is there a requirement to demonstrate a “need” to be a director in the business when seeking permission?

The strict answer no, but it is something which the court will undoubtedly look at and it is true that the greater a person demonstrates a “need” to be in the business, the more helpful it is for that person’s prospects of success.  

We acted for a director in the case of Re Aitch Holdings Limited [2002] All ER (D) 236 when we successfully obtained leave for our client to remain a director for 17 separate companies in a single application. When giving Judgement, Justice Lloyd did comment on the obvious “need” for our client to remain a director of all 17 companies and the importance of it in the success of the application.