BFI Winding-up Petition against #BLM Activist over Missing Sponsorship Funds

The British Film Institute (BFI) has issued a winding-up petition in the Insolvency and Companies Court against the company of a prominent Black Lives Matter (BLM) activist, Alisha Hall for a petition debt of £216,000 in sponsorship money. The activist’s alleged debts have fueled the ongoing debate surrounding financial transparency within social justice movements.

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The Allegations against the BLM Activist

Hall Media Group Limited (whose accounts and confirmation statement are both currently overdue) is being pursued by the British Film Institute for allegedly mismanaging £216,000 of sponsorship money. The funds in question were intended to support initiatives promoting racial equality and social justice causes. The activist’s alleged failure to provide a detailed account of how the money was used has raised media reported concerns about financial accountability and trust within the BLM movement.

The claim pertains to the agreements made between the involved parties during the glamorous London Film Festival in October 2021. Media platform, The British Blacklist reportedly claims it is owed £35,000 for a brunch and has reportedly joined in support of the BFI’s Companies Court winding-up petition.

The British Film Institute’s Winding-up Petition

Taking the matter to court, the British Film Institute seeks to recover the missing funds and shed light on the circumstances surrounding their allocation. It seems clear that the BFI wish to hold the activist accountable for alleged financial mismanagement.

BFI filed a winding-up petition reference number CR-2022-002658 on 16 August 2022 in the English Companies Court. If their petition is successful, a compulsory winding-up order will be issued and the official receiver or an insolvency practitioner will be put in charge of the liquidation and take control. The Company’s assets would then be liquidated and distributed to reimburse creditors. The case is due to resume later this year. Interestingly, journalist Josh Layton who has reported on the petition, has been listed on the Companies Court File in the role of a Third Party while the Company appears as a Litigant in Person (ie without legal representation for the winding-up petition).

Impact on Social Justice Movements

The legal battle between the BFI and the BLM activist serves as a reminder of the challenges social justice movements face in managing and allocating financial resources. It highlights the need for greater oversight, internal controls, and mechanisms to prevent the mishandling of funds. As these movements continue to gain momentum and attract significant financial support, ensuring transparent financial practices becomes paramount to maintaining their integrity and credibility.

The complexities of social justice funding cannot be overlooked. While financial resources are essential for driving meaningful change, organizations must strike a delicate balance between utilizing funds effectively and maintaining transparency. Robust systems for financial management, regular audits, and clear reporting mechanisms are vital to ensure that funds are allocated responsibly and serve the objectives of the movement.

Need Help Opposing a Winding Up Petition?

Our specialist winding-up petition lawyers are experts in defending winding-up petitions. We can advise you as to the specific merits and demerits of your case and can assist you in opposing winding up petitions and negotiating with creditors. If your company has been issued a winding-up petition or statutory demand, you may be able to challenge that petition and should seek legal advice. Companies are entitled to appear at the petition hearing by way of a Director to oppose the making of a winding-up order however it is usual to instruct solicitors and barristers to appear on their behalf at the hearing.

To oppose a winding-up petition, a Company will usually also need to file a witness statement in opposition with the Court within five business days before the date when the petition will be heard by the Court (rule 7.16 of the Insolvency (England and Wales) Rules 2016). A copy of that witness statement will need to be provided to the petitioning creditor at least five business days before the hearing. We are experts in successfully dealing with winding-up petition cases.