Press release

Directors share disqualification for failing to pay company’s tax

This news article was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

Directors of Club Media Systems Limited disqualified for a total of nine and a half years for failing to provide agreed services or paying company paid tax.

Garry Wayne O’Loughlin and Nicola Martin Hobson, directors of Club Media Systems Limited, based in Blackpool, which traded as a provider of digital advertising services, have been disqualified for a total of nine and a half years, for entering into agreements to provide advertising services which it was unable to provide and failing to make sure the company paid tax due to HMRC.

The disqualifications follow an investigation by the Insolvency Service.

Garry Wayne O’Loughlin (46) and Nicola Martin Hobson (47) have given undertakings to the Secretary of State for Business, Innovation & Skills not be involved in managing, controlling a company or being a director for six years and three and a half years, respectively.

The investigation found that Mr O’Loughlin and Ms Hobson, as directors of Club Media systems Limited, entered into agreements with customers for advertising services it was unable to provide, resulting in these customers being owed at least £22,715 at the date of liquidation.

Robert Clarke, Group Leader of Insolvent Investigations North at the Insolvency Service, commenting on the disqualifications, said:

Companies have limited liability, which is a privilege, not a right. These two directors entered into agreements which they knew the company could not fulfil, to the detriment of its customers, and failed to deal with its tax affairs, resulting in this privilege being withdrawn.

The investigation also found that the directors failed to ensure that Club Media Systems Ltd paid its debts to HMRC, thereby trading to the detriment of HMRC between 10 September 2010 and 21 March 2012. HMRC were owed £335,659 at the date of Liquidation and the failure to pay its tax liabilities caused Club Media Systems to be in breach of a Company Voluntary Arrangement it had entered in to.

The company was placed into liquidation on 21 March 2012 with an estimated deficiency of £739,179.

Notes to editors

Garry Wayne O’Loughlin is of Lytham St. Annes and his date of birth is 2 May 1968. Nicola Martin Hobson is also of Lytham St Annes and her date of birth is 4 October 1966.

Club Media Systems Limited - CRO No. 06374372 - was incorporated on 18 September 2007 and was placed into liquidation on 21 March 2012 on a petition filed by HMRC.

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
  • 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 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.

The company was placed into liquidation on 21 March 2012 with an estimated deficiency of £739,179.