Directors of company service provider disqualified for failing to keep records
Three directors from London-based ALG Management Ltd disqualified for a combined 16 years.
Three directors of a London-based company service provider have been disqualified for a combined 16 years for failing to keep records and, in one case, acting as a director when already disqualified.
Lisa Anne Mary Hamilton-Smith and Mangal Kapoor, directors of ALG Management Ltd (“ALG”) and Jonathan Andrew Henry Nuttall acting as director of ALG, a company service provider based in London have been disqualified as directors for 3, 5 and 8 years respectively, after given undertakings to the Secretary of State for Business, Innovation & Skills.
The disqualifications are due to the Official Receiver being unable to determine the purpose of various receipts into and payments out of ALG’s bank account.
The disqualification regime exists to protect the public. The effect of the disqualification undertakings is that the Ms Hamilton-Smith, Mr Kapoor and Mr Nuttall cannot promote, manage, or be a director of a limited company until the end of their period of disqualification.
Mr Nuttall signed a further undertaking stating, amongst other things, that he had acted as a director of ALG when he was restricted from doing so, initially through being a disqualified director and subsequently because of his status as an undischarged bankrupt.
This disqualification follows investigation by the Official Receiver at Public Interest Unit, a specialist team of the Insolvency Service, whose involvement commenced with the winding up of the company in the public interest following an investigation by Company Investigations into the affairs of the company.
The Official Receiver’s investigation uncovered that ALG had failed to keep, preserve and/or deliver up adequate accounting records to explain the purpose of cashed cheques totalling in excess of £128,000, cash receipts of £10,000, cash withdrawals of £8,500 and to establish what work was conducted in respect of fee notes totalling £994,997.
Commenting on this case Anthony Hannon, Official Receiver in the Public Interest Unit, said:
“Directors of companies are required to keep sufficient records to show and explain its transactions for a specified period of time. Those directors who fail to adhere to Companies Act legislation in respect of keeping proper records should expect to be banned from being a director.”
“Director disqualifications and bankruptcy restrictions are there to protect the public and ensure that trading partners can deal confidently with the registered directors of a company. Those who knowingly breach such provisions do so at significant risk and will be rigorously pursued by the Insolvency Service.”
Notes to Editors
ALG Management Ltd was incorporated on 16 January 2008. Its last trading address was at Dudley House, 169 Piccadilly, London W1J 9EH.
The petition to wind up the company was presented the Secretary of State for Business, Innovations and Skills in the public interest following an investigation conducted by Company Investigations (Live), another specialist unit within the Insolvency Service which uses powers under the Companies Act 1985 (as amended) to conduct confidential enquiries into the activities of live limited companies in the UK on behalf of the Secretary of State for Business, Innovations & Skills (BIS). The winding up order against ALG Management Ltd was made on 17 October 2012.
On 22 August 2014, Lisa Anne Mary Hamilton-Smith signed a disqualification undertaking for a period of 3 years. The period of disqualification commenced on 22 September 2014.
On 15 December 2014, Mangal Kapoor signed a disqualification undertaking for a period of 5 years. The period of disqualification commenced on 6 January 2015.
On 27 September 2016, Jonathan Andrew Henry Nuttall signed a disqualification undertaking for a period of 8 years. The period of disqualification will commence on 21 October 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, an executive agency sponsored by the Department for Business, Energy and Industrial Strategy (BEIS), administers the insolvency regime, and aims to deliver and promote a range of investigation and enforcement activities both civil and criminal in nature, to support fair and open markets. We do this by effectively enforcing the statutory company and insolvency regimes, maintaining public confidence in those regimes and reducing the harm caused to victims of fraudulent activity and to the business community, including dealing with the disqualification of directors in corporate failures. BEIS’ mission is to build a dynamic and competitive UK economy that works for all, in particular by creating the conditions for business success and promoting an open global economy. The Criminal Investigations and Prosecutions team contributes to this aim by taking action to deter fraud and to regulate the market. They investigate and prosecute a range of offences, primarily relating to personal or company insolvencies. The agency also authorises and regulates the insolvency profession, 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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