Former director refusing to hand back company information

[karenw80]

Despite several requests to hand over the information, which contains shareholders' personal data, a formedr director is continuing to refuse to do so.
We are considering a court application.
Any alternative suggestions would be appreciated.

 

[fisicx]

Have they given a reason why?

 

[karenw80]

They've given numerous reasons. All irrational.

 

[Daybooks]

As you are aware the information belongs to the Company and not the directors who are just custodians.

Obviously in terms of statutory records e.g. accounts and share registers etc. there can be no dispute that they belong to the Company.

In terms of any personal information whether that be employee payroll, shareholders or even customers and suppliers you could for starters remind the former director of General Data Protection Rules – which of course you should consider whether the Company have have breached those too.

After that you are probably onto the legal route and a review of your administrative procedures.

 

[Gyumri]

If they've acknowledged in writing that they have documents or records which belong to the company and they have given irrational reasons for holding on to the material you can threaten that you will need to apply for a mandatory injunction.

You could save going to court by setting out in a brief letter before action your complaint and what the former director is required to do.

Injunctions - a checklist - 5 Pump Court

Make sure your injunction applications are successful by following our guidance!

www.5pumpcourt.com

 

[karenw80]

@Pi Daybooks
We're aware that, in respect of this personal data, he did fail to respond to a SAR when he was a director.

It looks like the legal route is the only one available.

 

[Gyumri]

You should try to avoid the legal route and you should be able to, unless the former director is completely stupid.

You should spell out in a letter before action the type of material he has and that it belongs to the company, which has been asked to return.

He has acknowledged he has it and has given reasons for retaining it.

Indicate that you will apply for an injunction if necessary, solicitors fees are generally up to £500 per hour; and you will be seeking your costs.

Thus sort of thing should be capable of being resolved without going to court - which should be a very last resort, as it's not fun.

https://www.guildhallchambers.co.uk/files/1UrgentInjunctionApplicationsHSRA.pdf

 

[karenw80]

Agree that all avenues should be explored ahead of legal action.

 

[Gyumri]

The consequences could be spelt out even more clearly if he doesn't blink the first time - does he really want bailiffs turning up at his home or a charging order placed on his home or a 3rd party debt order obtained against his current employer?

These are all methods of enforcement following an order for costs so the former director would be very foolish to entertain such prospects for no sensible reason. To price on it it might cost him at least £20,000 which you will be seeking from him.

Having spelt out these unpleasant realities I would then smooth his concerns and appeal to his common sense so that he doesn't lose face.

"Softly, softly, catches the tiger."