Andrew Trollope QC, leading Elaine Palser, and instructed by RPC Bristol, acted successfully for personal stylist and influencer, Caroline Stanbury, in the High Court in Mark Reynolds (as liquidator of CSB123 Ltd) v Caroline Stanbury  EWHC 2506 (Ch). The application against Ms Stanbury was described by the judge as “regrettable” and all allegations against her were dismissed in full with costs.
The application was brought against Ms Stanbury as a director of CSB 123 Ltd (“SC1”) under s.212 of the Insolvency Act 1986 (the “misfeasance” provision). It was wrongly alleged by Mr Reynolds that she transferred the business and assets of SC1 for no consideration in breach of her duties under ss171 to 175 of the Companies Act 2006 and that the alleged transfer constituted an unlawful distribution of capital.
The burden was on Mr Reynolds to prove his case. Only had he been able to show, on a balance of probabilities, a transfer of business and assets from SC1 would the evidential burden then have shifted to Ms Stanbury to show the transfer was proper. He did not reach this second stage.
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