Please note that this News item is not maintained, and reflects the law as at the date of publication or update.
Partner Mark Williams provides an update on the position with regard to Sole Director Companies, previously reported in his article dated 12/10/2022.
Many directors and solicitors were surprised by the decision in Hashmi v Lorimer-Wing and the uncertainty the decision could create for sole director companies. However, the recent High Court case of Re Active Wear Limited appears to return us to a more settled position.
Re Active Wear Limited stated that the reason a sole director could not run the company in Hashmi v Lorimer-Wing was because the company had a bespoke article requiring more than one director. However, where a company has unamended Model Articles it can, as previously thought, be lawfully run by a sole director.
If a sole director company has articles which contain a bespoke provision requiring more than one director, it would still be sensible to have these looked over by a solicitor.
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