Two directors of Manchester based JLK Partnership Ltd (“JLK”) have been disqualified for a total of 10 years for failing to maintain full accounting records or exercise proper control over the company’s affairs.
Stuart Franklyn Delmonte (age 64) and Kirsty Michelle Englander (24), were both disqualified from acting as directors for 6 and 4 years respectively following an investigation by the Insolvency Service.
The company, which carried out substantial trading in metals, as well as being involved in corporate restructuring and office cleaning businesses, went into liquidation in 2012 owing £291,535 to creditors.
Both directors gave undertakings to the Secretary of State for Business, Innovation & Skills not to act as directors or in any way manage or control companies for the duration of their bans.
Commenting on the disqualifications, Ken Beasley, of the Insolvency Service’s Public Interest Unit said,
Mr Delmonte neglected his duties as a company director by failing to maintain proper accounting records. Miss Englander failed to exercise the proper level of control over the affairs of a company expected of a director.
Directors have a clear, statutory duty to ensure that their companies maintain proper accounting records. Without a full account of transactions it is impossible to determine whether a director has discharged his or her duties properly, or is using a lack of documentation to mask impropriety.
The Insolvency Service will use its enforcement powers to remove culpable and negligent directors from the market place”.
The lack of accounting records resulted in investigators being unable to determine the full extent of the company’s activities. In particular, investigators were unable to account for the company’s trade in metals during 2010 which had resulted in HMRC claiming £277,948 in unpaid VAT from the company.
Stuart Franklyn Delmonte gave an undertaking on 27 July 2014 not to act as a director for 6 years from 20 August 2014.
Kirsty Michelle Englander gave an undertaking on 29 July 2014 not to act as a director for 4 years.
Notes to Editors
JLK Partnership Ltd (“JLK”) - CRO Number: 05790331 - was incorporated on 21 April 2006 as Fannix Trading Ltd and changed its name to JLK Partnership Ltd on 10 November 2008.
The registered office of JLK for the greater part of six months prior to the liquidation was situated at Unit 77 Cariocca Business Park, Manchester., M40 8BB.
JLK was compulsorily wound up on 06 August 2012. There were no assets and liabilities of £291,535 which gives an estimated deficiency to creditors of £291,535.
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;
- act as an insolvency practitioner; or
- be a receiver of a company’s property.
In addition 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 can be found at https://www.gov.uk/government/collections/information-about-company-director-disqualification
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 from:
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Published: 18 September 2014
From: The Insolvency Service