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Director faced with prison after defying court orders

Posted: 8th January 2013   In: Dispute Resolution

A director has been given a 28-day suspended prison sentence after defying court orders during a dispute with another company.

His fellow director was fined £1,000 for his part in the offences.

The two men were directors of a company that leased premises to a business tenant. A dispute arose which led to the tenant obtaining three court orders against the two directors.

The first injunction required the directors to provide the tenant with keys to its premises after the locks had been changed as part of the ongoing dispute. The second injunction restricted the two directors from informing anyone about a petition to wind up the tenant’s business.

The third injunction required the directors to deliver up certain items to the tenant’s solicitor.

The directors failed to comply with any of the orders. The most blatant breach was when an advert appeared in a London evening paper publicising the winding-up petition.

The director responsible for the failure to deliver up items to the solicitor was fined £1,000.

The other director, who was responsible for the more serious offence relating to the advert, was sentenced to 28 days imprisonment, suspended upon payment within 28 days of £10,000.

Please contact Neil O’Callaghan if you would like more information about the issues raised in this article.