Press release

Ban for men who failed to run company in a competent manner

The directors of a Derbyshire hairdressser, and latterly an insolvency practice, have been disqualified for 10 years for failing to ensure the company acted with commercial probity and in a competent manner.


Lee Anthony Pitchford and Jason Pollard were directors of Baker Donald Ltd. The disqualifications, from January 2016, follow an investigation by the Insolvency Service.

The Secretary of State accepted an undertaking from Lee Anthony Pitchford on 3 December 2015. The disqualification commences on 24 December 2015. The Secretary of State accepted an undertaking from Jason Pollard on 15 December 2015. His disqualification commences on 5 January 2016.

The disqualifications prevent Mr Pitchford and Mr Pollard from directly or indirectly becoming involved in the promotion, formation or management of a company for the duration of their bans.

The company was incorporated in November 2011 as a hairdresser. However, in March 2012 it began trading as an insolvency practice, providing general corporate insolvency advice and referred clients to a firm of insolvency practitioners. The company also offered a debt collection service to a number of its clients. Mr Pitchford and Mr Pollard were the only directors at this point.

In March 2013, Baker Donald began trading as a licensed insolvency practice dealing predominately with corporate insolvencies; employing an in-house insolvency practitioner.

Baker Donald was linked to another company that offered both accounting and insolvency services. This company provided an ‘in-house’ insolvency practitioner to take on formal insolvency appointments that had previously been referred to external insolvency practitioners by Baker Donald.

On 11 February 2014, the Secretary of State for Business, Innovation & Skills, issued a public interest winding up petition against the company, including on the grounds that the company was issuing misleading marketing letters, failing to properly deal with money received and failing to maintain accurate records. On 18 February 2014, a provisional liquidator was appointed on the application of the Secretary of State for Business and on 17 April 2014, a winding up order was made against the company.

The Insolvency Service investigation found that:

  • Mr Pitchford and Mr Pollard failed to ensure that Baker Donald Limited operated with commercial probity or in a competent manner
  • the accounting records were not adequate or complete, and were materially inconsistent with the accounts filed for the year ending 30 November 2012
  • in at least 7 cases dating from before Baker Donald traded as a licensed insolvency practice, there were inadequate records to explain, support or justify significant fees charged and work asserted to be undertaken. The inadequate documentation included the lack of a written agreement or evidence of agreed terms relating to the collection of book debt proceeds on behalf of a least 5 clients
  • between March 2012 and March 2013, the trading relationship with a firm of insolvency practitioners could not be ascertained with any accuracy, including the identity and number of cases referred and the moneys properly due
  • Baker Donald did not properly and appropriately deal with the sums of money it had received through its trading practices. It failed, either deliberately or through its poor record keeping, to properly segregate money due to clients, third parties and itself. As a result, the Secretary of State concluded that Baker Donald had either taken money (in relation to its own fees) that ought to have been paid elsewhere and/or returned to its clients - money that ought to have been paid to third parties
  • Baker Donald’s global client account was used as an informal unregulated banking facility with no consistency as to the level of fees charged for its use. The use of Baker Donald’s account created an additional and unnecessary layer of activity and bureaucracy such that income from book debts received was capable of being concealed from creditors
  • Baker Donald did not transparently describe and disclose the work it would perform nor declare the actual work performed and the true extent of fees charged. There was a lack of transparency in disclosures to creditors within the proposals and statement of affairs as to the actual work performed by Baker Donald and the true extent of fees charged. In the majority of cases the fees charged amounted to the same or close to the value of asset realisations
  • on at least 8 files reviewed during the investigation, there were signed terms of engagement with the relevant directors of the client companies. Within these documents there is no reference to the actual work to be undertaken and the agreed remuneration rate for any work undertaken
  • Baker Donald issued misleading marketing documents as to its full and true charges. Baker Donald issued marketing letters to companies in financial difficulties offering its services for £495. Records produced show that Baker Donald’s fees exceed this sum with standard client letters for both CVLs and CVA’s cases detailing an initial fee of a least £1,000, and on average the fee was £4,200

At the time of Liquidation the Official Receiver was unable to establish an accurate figure for Baker Donald’s assets. Liabilities were estimated to be £60,572.

Commenting on the disqualification, Cheryl Lambert, Chief Investigator at the Insolvency Service, said:

Directors have a duty to ensure that they act competently and with commercial probity. Directors who do not comply with this basic obligation can expect to be investigated by the Insolvency Service and enforcement action taken to remove them from the market place.

In this case Mr Pitchford and Mr Pollard misled clients, failed to act with transparency and did not protect their clients’ money when they had a duty to do so. Their conduct demonstrates that they are unfit to be directors of a company.

Taking action against Mr Pitchford and Mr Pollard is a warning to all directors to seriously consider their actions and to comply with their obligations.

Notes to editors

Baker Donald Ltd (CRO 07865664) was incorporated on 30 November 2011. Its registered office was 79 Saltergate, Chesterfield, Derbyshire. It traded from the same address.

Baker Donald Ltd was placed into Liquidation on 17 April 2014.

Lee Anthony Pitchford is of 1 Hough Close, Chesterfield, Derbyshire, S40 2FJ. His date of birth is 15 September 1979. Jason Pollard is of 32 Belvedere Avenue, Walton, Chesterfield, S40 3HZ. His date of birth is 14 January 1983.

A disqualification order or undertaking has the effect that without specific permission of a court, a person with a disqualification cannot:

  • act as a director of a company
  • take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
  • be a receiver of a company’s property

In addition that person cannot act as an insolvency practitioner and there are many other restrictions are placed on disqualified directors by other regulations. Further information on director disqualifications and restrictions is available.

The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency authorises and regulates the insolvency profession, deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

All public enquiries concerning the affairs of the company should be made to: Cheryl Lambert, Head of Outsourced Investigations, Investigations and Enforcement Services, The Insolvency Service, 3rd Floor, Abbey Orchard Street, London SW1P 2HT. Tel: 0207 596 6117. Email:

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Published 26 January 2016