The company was managed on day to day basis mainly for reasons, but eventually the project manager was hired. Most decisions are taken fairly informal management, board meetings were held every six months, and additional meetings are convened when necessary.

Unfortunately, in 2006 the company became insolvent. On 3 July 2006, other employees, including the applicants, were released by the liquidator. Subsequently, the applicant applied to the bankruptcy services for severance and other benefits them up, 166 to 168 and 182 to 186 of the Employment Rights Act 1996 (bankruptcy legislation), in accordance with paragraph.Their applications were rejected by bankruptcy professionals on the ground that they were not employees within the meaning of the 1996 Act. The challenge to that decision was dismissed by the labor court. The court ruled, inter alia, that there could be employees because they were in practice, a total of total control over the company, and therefore able to prevent their own exemptions. The applicant appealed.

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