EAT on 18th April 2005, UKEAT/0855/04 RN


NOTES

  • Mountain Spring Water Co Ltd v Colesby, EAT on 18th April 2005
  • The full text of this judgment is available free of charge on the EAT website.

    Authority for the propositions that:-

    1. where a company director is also an employee of his company and Article 84 of Table A, Companies Act 1985 applies, then his removal as a director from the Board also automatically terminates his employment contract;

    2. if in that situation the ex-director complains that he was unfairly dismissed his complaint is likely to be based on the assertion that there had been an irremediable breach of the implied term of trust and confidence, in which case the employment tribunal concerned must examine the underlying causes to determine whether the dismissal was justified as being for "some other substantial reason" within the meaning of Employment Rights Act 1996 s.98.

    For relevant general notes see Company Directors/employment status and/or Wrongful dismissal/unfair dismissal and wrongful dismissal compared .


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    prepared July2005