Secretary of State for Trade and Industry v Baker & Others

Abstract

This case arose from the 1995 collapse of the Barings Banking Group caused by the enormous losses resulting from Nick Lee‐son's unauthorised derivatives trading in Singapore, while general manager of Barings Futures (Singapore) Ltd. The holding company of the Barings Group, Barings plc, and a number of its subsidiaries were placed in administration as soon as the scale of the losses became apparent and in July 1995 the administrators submitted a report to the Secretary of State for Trade and Industry as they were bound to do by s.7(3) of the Company Directors’ Disqualification Act 1986 (CDDA 1986). Section 6 CDDA 1986 provides that it is the duty of the court to disqualify unfit directors of insolvent companies:

Citation

V‐C, R.S. and Gray, J. (1998), "Secretary of State for Trade and Industry v Baker & Others", Journal of Financial Regulation and Compliance, Vol. 6 No. 1, pp. 85-89. https://doi.org/10.1108/eb024962