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England and Wales High Court (Chancery Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Chancery Division) Decisions >> Price v The Registrar of Companies & Anor [2016] EWHC 2640 (Ch) (25 October 2016) URL: http://www.bailii.org/ew/cases/EWHC/Ch/2016/2640.html Cite as: [2016] WLR(D) 563, [2016] EWHC 2640 (Ch), [2017] 1 WLR 299, [2017] WLR 299 |
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CHANCERY DIVISION
IN THE MATTER OF PABLO STAR LIMITED
AND IN THE MATTER OF THE COMPANIES ACT 2006
7 Rolls Buildings New Fetter Lane London EC4A 1NL |
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B e f o r e :
sitting as a Judge of the High Court
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HAYDN PRICE |
Appellant |
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- and - |
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(1) THE REGISTRAR OF COMPANIES (2) THE WELSH MINISTERS |
Respondents |
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Michael Todd QC (instructed by Geldards LLP) for the 2nd Respondent
Mr Walker appeared for the 1st Respondent
Hearing date: 14 October 2016
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Crown Copyright ©
Judge Behrens:
"The sole reason it is sought to restore the name of the Company to the Register of Companies is to allow the Company to pursue specific litigation for damages (for previous breach of copyright which has come to light) and which is actionable by the Company alone and with a good chance of success."
- it commenced proceedings in New York for alleged breach of copyright against WM, Tribune Media Service, Pittsburgh Post Gazette (PG Publishing Inc), E W Scripps Co, Colorado Newsfeed, Travel Squire, Richmond Times Dispatch and Miami Herald Media Co; and
- it commenced proceedings in Ireland for alleged defamation by Ms Watkins.
"new circumstances have come to light not originally known when I first made my undertakings and some of my subsequent actions may have needed the courts [sic] permission".
"This agreement shall also not affect the Assignors potential actions in America and Canada against (3) Visitwales.com or the so called "Welsh Ministers" (for which the Assignors rights, remedies and potential actions are not transferred and its copyright ownership as far as it relates to those potential actions remains unchanged)".
- The assignment to Media showed that the three named sets of proceedings was not the sole reason to restore Pablo Star. Mr Price's first statement was accordingly untrue.
- Claims made by Media are a breach of the first undertaking as were claims in America by Pablo Star against Defendants not named in the first undertaking.
- Mr Price falsely represented that claims against VisitWales.com were vested in Media and not Pablo Star.
- Some of the assertions of fact made by Mr Price in his second witness statement were untrue.
- The assignments and the defamation proceedings breached both the first and second undertakings.
Stanhope
That leaves the now academic question of whether the judge should have allowed Post and Properties to be joined in the proceedings. As Harman J remarked in Re Portrafram Ltd (1986) 2 BCC 99,160 such applications are usually to all intents and purposes ex parte. The registrar of companies, who appears by counsel instructed by the Treasury Solicitor, will assist the court on whether the requirements of the section have been satisfied but has no interest except in securing the registrar's costs. The making of the order does not determine whether the applicant has a claim against the company or the company has a claim against a third party. As I have already said, all that is required is that the claim should not be 'merely shadowy'. It therefore seems to me that a third party who merely wants to say that the applicant has no claim against the company or that the proceedings which the revived company proposes to bring against him have no prospect of success should not be entitled to intervene in the application.
There are however some cases in which an order will directly affect the rights of a third party, irrespective of whether the applicant has any claim against the company or the company has any claim against the third party. Re Servers of the Blind League was such a case. The residuary legatees had a right (which in the event was adequately safeguarded by Pennycuick J without their appearance) to their bequests under the will which would have been divested if the judge had made the order. In those circumstances I think that they were entitled to be joined in order to argue that such an order should not be made.
In this case it seems to me that Post and Properties were wanting to argue that in principle their potential liabilities under their indemnities had been irrevocably discharged by the dissolution of Forte. As I have said in the first part of this judgment, I think that the alleged principle is fallacious. But it was sufficiently arguable to have persuaded the judge and I think that Post and Properties were entitled to be joined in order to argue it. I would nevertheless allow the appeal and restore Forte to the register.
Blenheim
Section 653(2B) of the 1985 Act gives to the court a general discretion to allow restoration if satisfied that at least one of the three conditions set out in that section had been complied with. All of the conditions are relied on by the respondents. Thus the court may, before exercising its discretion, need to be satisfied that it is just to order restoration. What is just must depend upon all the circumstances of the case. Such circumstances must include the nature of the application to remove Blenheim's name from the register, the reasons for the application to restore and I believe all the subsequent events that have happened, including intervening substantive rights that have arisen after dissolution. The weight to be given to any fact or matter will be decided by the judge having regard to all the circumstances of the case.
Nourse LJ has referred to the long-standing practice in the Companies Court; but it appears to be subject to exceptions as the cases to which I have just referred show. Whether or not the passage from the judgment of Hoffmann LJ in Stanhope Pensions Trust Ltd quoted above is obiter dicta, it appears to me to set out the law. As he points out intervention should only be allowed in a limited number of cases. In the present case, the respondents seek to have Blenheim's name restored to the register as 'it is for some other reason just to do so' (see s. 653(2B)(c)). That gives to the court a wide discretion and enables the court to take into account the rights of third parties that may be directly affected. In my view it is desirable that the appellants be added so that the court can be fully informed of their rights and take into account before deciding whether it is just for restoration to be ordered.
In my judgment it is desirable, if justice is to be done and seen to be done, that the appellants are added to these proceedings so that the court can resolve whether restoration should be ordered. To conclude to the contrary would mean that rights directly affecting the appellants would be decided without their being able to be heard upon the issue of whether restoration was just. That in my judgment is not desirable. I do not envisage, as Mr Warwick suggested, that such a conclusion will result in a large number of proceedings for restoration being turned into major litigation. As I have pointed out intervention has taken place in the past and I envisage it will in the future in limited circumstances where the decision would or might directly affect rights or obligations.
I should add that it will still be for the court to decide in any particular case whether or not to allow intervention. It could I think quite properly only allow intervention in cases where the order for restoration itself would or might directly affect the rights of the intervener. This is such a case. In most cases restoration does not affect rights or obligations. For example a debtor whose creditor is struck off is not directly affected by any decision to restore since the debt exists before and after restoration. All that changes is the identity of the creditor.
Spring Salmon
This last point is important. For a person to be directly affected by the restoration so as to be justified in opposing it, it must be normally be shown that he has altered his position on the strength of the company having been struck off and will suffer some loss or damage if the company is restored which he would not otherwise have suffered. But he is not directly affected by the restoration if all that happens is that he is restored to the position he was in, or would have been in, had the company not been struck off in the first place: see per Laddie J in Re Priceland Ltd [1997] BCC 207 at 215B-C.
- Firstly, they have brought to the attention of the Court what appears be material which shows, at the very least, that the Court may have been seriously misled, not only in the course of granting the original order for restoration but also in the course of allowing the discharge of the original undertakings and their replacement with further undertakings.
- Those matters, it seems to me, do require fuller investigation and the Court will be greatly assisted by the evidence, analysis and submissions provided by or on behalf of [WM] in these respects.
- Secondly [WM] are clearly directly affected by the restoration as well; not only in the more obvious sense of being a potential Defendant to litigation which is now ongoing (and in more than one jurisdiction, I understand) but also by the role now played by a sibling company, Media. It seems to me that that is a dimension of this matter which is very similar, in analogous terms at least, to the example given in Spring Salmon of Reservers of the Blind League.
- The dimensions arise as follows. As a result of the restoration not only are [WM] exposed to being sued by [Pablo Star], they are also exposed to be sued by a sibling Company which, prior to dissolution, had no right to sue [WM]. That sibling Company is Media. The impact of the restoration is retrospectively to give life to an assignment which would otherwise be of no effect whatsoever, the assignment having been executed post dissolution
Delay.