Balance Sheet Assets: Re Charlotte Street Properties Ltd [2019] EWHC 1722 (Ch)

Balance Sheet Assets: Re Charlotte Street Properties Ltd [2019] EWHC 1722 (Ch) was a case that suggested that an asset on your company’s balance sheet is likely to be a reasonably good indication of some form of ownership even if the legal title to the asset is held by a Director personally.

Balance Sheet

“The Properties were treated as assets of the Company in its annual accounts. No doubt this was on the footing that NEL’s rights had been assigned to the Company and beneficial ownership had thus passed from NEL to the Company. Mr Ezair would have acted in his capacity as a director of NEL and, if he was not a de facto or shadow director of the Company, he plainly had a measure of control over its affairs. However, in his personal capacity, he was the legal owner of the Properties and in that capacity he acted as trustee and acknowledged the Company’s beneficial interest. In my judgment, Mr Ezair is thus estopped from denying that NEL’s rights under the 1999 Agreement have been assigned to the Company and that, following assignment, the Company is entitled to exercise NEL’s rights under the 1999 Agreement, including its right to serve notice fixing the completion date.”

It is worth remembering what is signed when you sign a company balance sheet; you are in effect affirming that the information shows a true and fair view.