The director of a North East based shopfitting company, who breached the terms of and earlier disqualification has been handed an eight year disqualification for doing so.
David Thompson, who was disqualified in November 2013, continued to act as if a director in the successor company, Concept 9 Ltd.
As the director of another company - Interior Service Solutions Ltd - Mr Thompson had previously given an undertaking to the Secretary of State for failing to comply with the company’s statutory obligations to HMRC and allowing the company to trade to the detriment of HMRC. Mr Thompson’s disqualification was from 25 November 2013 to 24 May 2017.
An investigation by the Insolvency Service discovered that despite not being an appointed director of Concept 9 Ltd, Mr Thompson, 55, of Acklam, Middlesbrough, continued to act as a director in controlling the affairs of the company including being the key official who dealt with the bank and signing the vast majority of cheques issued and dealing with queries from HM Revenue and Customs (HMRC).
on 16 August 2016, Mr Thompson gave an undertaking to the Secretary of State for Business, Energy and Industrial Strategy not to act as a director for 8 years, from 6 September.
The disqualification prevents Mr Thompson from directly or indirectly becoming involved in the promotion, formation or management of a company for the duration of the order, without leave of the Court until 2024.
Robert Clarke, Group Leader of Insolvent Investigations North, which is part of The Insolvency Service said:
Directors who ignore disqualification undertakings that they have previously given, and those who provide cover for them, to allow them to continue to run limited companies will be vigorously pursued by The insolvency Service. The length of the undertakings in this case sends a clear message to the business community that such actions will not be tolerated.
Notes to editors
Concept 9 Ltd (CRN 07775034) was placed into creditors voluntary liquidation (CVL) on 9 February 2015 with a deficiency as regards creditors of £298,346. The company traded as shop fitters to the haulage and security industries from Barton Road, Riverside Industrial Estate, Middlesbrough.
The Secretary of State accepted an undertaking from David Thompson that he would not act as a director for a period of 8 years. The disqualification coming into effect on 6 September 2016.
A disqualification order 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
Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Persons subject to a disqualification order are bound by a range of other restrictions.
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.
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Published: 3 October 2016
From: The Insolvency Service