UK SUPREME COURT: CASE COMMENT – CPS V AQUILA ADVISORY LTD

On 4 May, a post on the UKSC Blog was concerned with the above case and the attribution of directors’ criminal actions and who should have priority over assets derived from their criminal schemes.  2 directors committed various criminal tax offences in breach of their fiduciary duties and made a secret profit of £4.55 million.  Their company subsequently went into administration and when it did so, another company (Aquila) was assigned its proprietary rights.  The 2 individuals were convicted, but their company was not charged. The CPS sought confiscation orders but Aquila asserted that as it had a proprietary claim to the secret profit as it has priority over the confiscation orders.  In its decision, the Supreme Court reaffirmed the existing law on constructive trusts, illegality and attribution of directors’ wrongdoing to their companies. It is said that this case is helpful for companies seeking to recover and retain directors’ secret profits.  The Court noted that the CPS may have avoided their problem by including the directors’ company in the original indictment.

http://ukscblog.com/case-comment-crown-prosecution-service-v-aquila-advisory-ltd-2021-uksc-49/

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Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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