Essex brothers banned for allowing company to break the law
Brian Eric Moon and Leslie John Moon have been disqualified from acting as directors for 10 years, for causing a company to be convicted of criminal offences, misappropriating funds, and breaching statutory duties and obligations.
The disqualifications follow an investigation by the Insolvency Service.
Twinkle Transport Limited was established in 1978 by brothers Brian and Leslie Moon, initially carrying out domestic removals and progressed to freight transportation.
The investigation found:
- the directors were responsible for Twinkle Transport being convicted before Norwich Magistrates Court on 6 February 2013 of a total of 13 offences. The offences included using a vehicle not specified on the operator licence, using a document resembling an operator’s licence disc with the intention to deceive, two offences concerning failure to produce documents and nine offences concerning failure to produce tachograph record sheets and/or digital data when lawfully required to do so
- the convictions resulted in the Company receiving fines in the sum of £3,700.04 and being found liable for costs in the sum of £3,066.00
- on 18 June 2013, the Traffic Commissioner of the East of England revoked the Company’s Goods Vehicle Operator Licence and the company was disqualified from holding an operator’s licence for a period of one year. The order was extended to Brian and Leslie Moon for a period of one year
- Brian Moon was also disqualified from relying on his Certificate of Professional Competence until he has undertaken such training to regain his Certificate of Professional Competence by passing the relevant examinations
- after Twinkle lost its Vehicle Operating Licence and trading had ceased in June 2013 the directors beached their duties as directors, by making payments to themselves
- between 25 October 2013 and 22 November 2013 a total of £136,900 was paid to Brian Moon
- between 21 October 2013 to 18 December 2013, a total of £18,429 was paid to Leslie Moon
- the directors also caused Twinkle to trade whilst insolvent at the risk of and ultimate detriment of creditors from at least 1 April 2011 and for the benefit of themselves
- the directors failed to ensure that Twinkle complied with statutory obligations to file returns and make payment to HMRC
Twinkle Transport went into Liquidation on 7 January 2014 with no assets and liabilities of £581,478.
Commenting on the disqualification, Cheryl Lambert, Chief Investigator at the Insolvency Service, said:
Directors have a duty to ensure that the company’s business activities comply with the law. Directors who do not comply with this basic obligation can expect to be investigated by the Insolvency Service and enforcement action taken to remove them from the market place.
In this case Brian and Leslie Moon caused the company to break a number of laws resulting in the company receiving criminal convictions.
These convictions show there was a serious lack of compliance with the relevant legislation. After these convictions led to the company being unable to trade they then proceeded to make payments to themselves.
Taking action against Brian and Leslie Moon is a warning to all directors to seriously consider their actions and compliance with legislation. Directors must ensure they perform their duties and obligations.
Notes to editors
Twinkle Transport Limited (CRO 01371605) was incorporated on 1 June 1978. Its registered office was 6 Sewardstone Road, Waltham Abbey, Essex EN9 1NA. It traded from 7 Vulcan Road South, St Faiths Industrial Estate, Norwich, Norfolk NR6 6AF.
Twinkle Transport Limited was placed into Liquidation on 7 January 2014.
Brian Eric Moon is of Norwich. His date of birth is 14 July 1953.
Leslie John Moon is also of Norwich and his date of birth is 19 November 1948.
The Secretary of State accepted undertakings from Leslie Moon and Brian Moon on 4 December 2015. The disqualifications commence on 25 December 2015.
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.
All public enquiries concerning the affairs of the company should be made to: Cheryl Lambert, Head of Outsourced Investigations, Investigations and Enforcement Services, The Insolvency Service, 3rd Floor, Abbey Orchard Street, London SW1P 2HT. Tel: 0207 596 6117. Email: Cheryl.Lambert@insolvency.gsi.gov.uk.
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Published: 22 December 2015
From: The Insolvency Service