Johnson (as Liquidator of Strobe 2) v Arden and others

Practice – Pre-trial or post-judgment relief. The directors, and executive directors of a company in liquidation, succeeded in their application to strike out the claims made by the liquidator. The Chancery Division held that there had been no wrongful trading under s 214 of the Insolvency Act 1986 and further, as a matter of construction, the court did not have jurisdiction to make an order under ss 238, 239 and 423 of the Insolvency Act 1986 against a director of a company, who had received no benefit from the transaction or preference and whose only role was to direct the company to enter into the transaction or to give the preference.

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