Bates, R (On the Application Of) v Highbury Corner Magistrates' Court

Mr Westhead was a shareholder in hibu PLC (“Hibu”). Formerly known as Yell Group PLC, the company was best known for production of the Yellow Pages directory. Mr Bates was the company’s Chief Financial Officer from November 2010 to May 2014. In 2013, Hibu went into administration. Proceedings before the Chancery Division in 2014 resulted in the approval of schemes of arrangement for the group. As a result of Hibu’s insolvency, shareholders lost their investments.

A group of shareholders who are extremely angry about what happened have formed a company called the Hibu Shareholders Grouping Limited (“HSG”). Mr Westhead is a director of HSG. Mr Westhead told me that he had been fighting for justice for many years. He had been unable to secure funding for civil proceedings in this country. A group action in the United States failed, being struck out on jurisdictional grounds. He applied for a summons to commence a private prosecution as he had no other options left.

Mr Westhead firmly believes that Mr Bates, and other Hibu directors, are guilty of a complex fraud. This belief is unfounded. Mr Westhead has advanced no proper basis for making criminal allegations against Mr Bates.

The application form required Mr Westhead to concisely outline the grounds for asserting that the proposed defendant committed the alleged offences (Criminal Procedure Rules r.7.2.6). Mr Westhead alleged that Mr Bates had breached “each one of the duties described in the [Companies Act] 2006.” The relevant sections of the Act were referenced. The application then stated:

“One must then consider the actions of Tony Bates against the Fraud Act 2006. I put it to the Courts that Tony Bates is guilty of fraud on all counts.”