Property tycoon William Stern, who in 1979 was Britain’s biggest-ever bankrupt with debts of £118m, has launched a challenge to a 12-year ban preventing him holding company directorships.
The ban was imposed on Stern in April last year at the High Court by Mr Justice Lloyd. Stern, 67, was found guilty of serious misconduct in his handling of creditors’ money when he was director of two companies which went into liquidation owing over £11m in the early 1990s.
The ban followed claims by the Official Receiver that Stern was not fit to be a director.
Stern had held a controlling interest in a group of companies, whose holding company was Dollar Land Holdings. Management and administration services were provided to the group first by Kensington Management Services and then by Westminster Property Management, with Stern and his son Mark holding directorships in the companies.
Kensington went into creditors’ voluntary liquidation in 1993 owing £5.77m, while Westminster was wound up in 1994 owing £1.22m. Overall the companies were deemed to have debts of over £11m.
Today Stern argued at the Court of Appeal that the judge had been wrong in his findings and that the Official Receiver did not have adequate reasons for saying that creditors of Sterns companies would not be paid in full and within a reasonable time.
Stern is also seeking permission to challenge the judges findings that he made improper financial withdrawals in the course of his directorships.
The hearing, which is expected to last three days, continues.
EGi News 23/10/01
