The Secretary of State for Business and Trade v Gareth David Gwynne Davies

Facts

The Secretary of State for Business and Trade brought a claim, dated 22 June 2023, under section 6 of the Company Directors Disqualification Act 1986 seeking to disqualify Mr Davies, the sole shareholder and (save for a short interval) sole director of Orange Tree Sawbridgeworth Limited, which traded from April 2019 as a pub, bar and restaurant and entered creditors' voluntary liquidation on 15 June 2021. Mr Davies appeared in person. The Secretary of State, relying on two affidavits of Ms Covell, alleged first that he caused the company to pay out £33,000 of a £50,000 bounce back loan, received on 18 May 2020, to himself on 1 June 2020 without evidence of economic benefit to the business, contrary to the loan terms. Secondly, he was alleged to have failed to maintain or preserve adequate accounting records, or to deliver up sufficient records, for the period April 2019 to May 2021. Mr Davies said the money funded a farm shop which became the company's only trading business during the COVID restrictions, and that the invoices had been sent to the company's accountants. The Secretary of State no longer relied on the directors' loan account point. The claim came before ICC Judge Agnello KC at a hearing on 21 July 2026.