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Tribunal rules directors can pursue unfair dismissal in pre-pack case

Directors of a failed company have been cleared to pursue a case for unfair dismissal in a ruling that lawyers say could pave the way for a landmark decision on corporate insolvencies. The tribunal ruling allows employees of an insolvent company to sue a business allegedly born out of the company that employed them where there is a "commonality of ownership" between the two. Stephen Dorrell is accused of using the controversial pre-pack administration procedure to move the assets of a company into a new corporate entity owned by himself.
Category: Employment » Dismissal. Keyword(s): Insolvency; Administration. Area(s) of law: Employment; Litigation; Corporate and Commercial Law.
Source: Guardian.

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