Director Held Personally Liable for Company’s Non Compliance of Court Order
14th February, 2013
A recent case has demonstrated the potential consequences for directors of a corporate defendant that fails to comply with a Court Order.
In the case of The Lord Mayor and the Citizens of the City of Westminster v Addbins Limited and others, cigarette bins were erected by the First Defendant, displaying advertising for the Second Defendant in various locations throughout Westminster in contravention of planning legislation.
The Defendants failed to remove the signs, even after being found guilty of a criminal offence. It was at this point that the City of Westminster applied to the civil courts for an injunction compelling the Defendants to remove the bins. The injunction was granted, but the bins were still not removed.
Both corporate Defendants were held to be in contempt of Court for failing to comply with the Court order. Despite not being a named party to the injunction, the Court found Mr Griffin (who was a director of both corporate Defendants) to have enough personal involvement in the proceedings to find him personally liable.
Mr Griffin could have faced a prison sentence for the contempt, but instead was ordered to pay a fine, as were both corporate Defendants.
The case serves as a reminder of the wide ranging nature of directors’ duties. In particular, a director should take reasonable steps to ensure any penal order is obeyed. A wilful failure to do so could lead to fines, seizure of personal assets or even imprisonment.
Directors who are concerned about their personal liability in such situations are recommended to seek independent legal advice.
If you have any questions regarding this article, please do not hesitate to contact David Harries on 01244 405527 or email him at [email protected].
You might also be interested in...
17th July, 2018
Helen Watson, Head of Employment Law at Aaron & Partners LLP, has taken up an invitation to become a Trustee of both the Trust Board and the Main Board Theatr Clwyd has bolstered its senior leadership team with the appointment of an experienced employment law solicitor to support its vision of being at the forefront of theatre making... Read More »
6th July, 2018
When a business invests in its community it deserves praise – but it must go beyond that, writes Helen Watson, a trustee at Claire House and partner at Aaron and Partners Solicitors. Corporate social responsibility (CSR) is the link between a company and the community in which it operates. As a trustee on charity boards including Claire House... Read More »
4th July, 2018
Stuart Haynes, Corporate & Commercial Partner and IAG Global Board Member, reports on IAG Global – Wiesbaden held 14th to 17th June 2018 Stuart Haynes (IAG Global Board Member) Stuart Scott-Goldstone and Nick Clarke attended the recent IAG Global meeting in Wiesbaden which was held at the Grand Hotel Nassauer Hof from 14th – and 17th July 2018 The meeting... Read More »