SQN Global Limited v Marcus Hughes & Ors

Facts

Genesis (2014) UK Ltd was incorporated in October 2014 and operated a haulage business, with Mr Marcus Hughes as its sole director and shareholder until 4 December 2018. He resigned after the traffic commissioner disqualified him for five years for failing to disclose two convictions which had resulted in immediate custodial sentences, and revoked the Company's operator licence. His partner, Ms Tracy Greening, and Ms Helen Walker were appointed directors and the licence was regained in February 2019. In a further decision issued on 29 January 2021, the commissioner found that Mr Marcus Hughes had continued to play a significant managerial role, revoked the licence again and disqualified the Company for three years from April 2021. SQN Global Limited sued the Company and Mr Marcus Hughes for unpaid invoices, obtaining a worldwide freezing order against Genesis on 21 May 2021 and, ultimately, judgment against Mr Hughes for £6,145,772.69; Genesis went into compulsory liquidation on 26 April 2022. The liquidators issued a claim under section 213 of the Insolvency Act 1986 against six individuals; SQN was substituted as claimant having taken an assignment of the cause of action. No defences were filed and the defendants were debarred from defending, the matter coming before the court as a disposal hearing.