The disqualifications follow an investigation by the Insolvency Service, which found the directors caused or allowed The Dental Clinic to trade at unreasonable risk and to the detriment of, members of the general public from December 2012 to March 2013. This resulted in losses to customers and providers of a ‘deal of the day’ recommendation service of at least £90,928.
By the time The Dental Clinic entered liquidation, the liquidator had received 93 claims from patients for unfinished dental work paid for in advance.
Nigel Saunders and Michelle Saunders were directors from 21 March 2011 to the date of liquidation. The Company went into Liquidation on 22 March 2013 with an estimated deficiency of £240,751.
The Dental Clinic entered liquidation on 22 March 2013 with a deficiency of £240,751.
Nigel Saunders gave an undertaking to the Secretary of State for Business, Innovation and Skills on 7 July 2014 which prevents him from being directly or indirectly becoming involved in the promotion formation or management of a company until 7 August 2020.
A disqualification order was made against Michelle Saunders in the County Court sitting at Welshpool on 10 September 2015 which prevents her from being directly or indirectly becoming involved in the promotion formation or management of a company for a period of 7 years.
Commenting on the disqualification, Sue MacLeod, Chief Investigator at The Insolvency Service, said:
Company Directors should note from this enforcement result that any action which puts creditors at unreasonable risk; especially where it involves members of the general public, is likely to lead to serious censure.
Jane Knight, Senior Investigator, Insolvent Investigations – Midlands and West said:
The disqualification order made in this case sends a clear message to other company directors that if they run a business in a way that is detrimental to either its customers or its creditors, they will be investigated by the Insolvency Service and removed from the business environment for a long time.
Limited liability protection is only available to those who comply with their obligations as company directors. If those obligations are ignored, that protection will be withdrawn.
Notes to editors
Nigel Saunders date of birth is 3 March 1981 and he resides in Birmingham.
Michelle Saunders date of birth is 6 June 1982 and she also resides in Birmingham.
The Aesthetic and Dental Clinic Limited (CRO No 07572229.) was incorporated on 21 March 2011 and latterly traded from 8a College Hill, Shrewsbury, Shropshire, SY1 1LZ. The business of The Dental Clinic was that of a dental practice.
The County Court sitting at Welshpool heard that Michelle Saunders caused or allowed The Aesthetic and Dental Clinic Limited (“The Dental Clinic”) to trade at unreasonable risk to, and to the detriment of, members of the general public from December 2012 to March 2013, resulting in losses to customers and providers of a deal of the day recommendation service of at least £90,298.
On 17 July 2014, the Secretary of State accepted a Disqualification Undertaking from Nigel James Michael Saunders, effective from 07 August 2014, for a period of 6 years. The matters of unfitness, which Mr Saunders did not dispute in the Disqualification Undertaking, were that:
I caused or allowed The Aesthetic and Dental Clinic Limited (The Dental Clinic) to trade at unreasonable risk to, and to the detriment of, members of the general public from December 2012 to March 2013, resulting in losses to customers and providers of a deal of the day recommendation service of at least £90,298.
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
In addition that person cannot act as an insolvency practitioner and there are many other restrictions are placed on disqualified directors by other regulations.
Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. 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.
Media enquiries for this press release – 020 7674 6910 or 020 7596 6187
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