Lettings agency director disqualified for failing to protect client deposits
Paul Davison, a Leeds based director of Docklands and City Lettings Limited, a lettings and management agency based in the Docklands area of London, has been disqualified from acting as a company director for 3 years and 6 months for failing to exercise control of the company’s business or protect client deposits.
Mr Davidson’s disqualification follows an investigation by the Insolvency Service.
Mr Davison (49) gave an undertaking to the Secretary of State for Business, Innovation and Skills which disqualifies him from managing or in any way controlling a company or being a director until 24 June 2018.
In giving the undertaking Mr Davison did not dispute that between 2 June 2011 and 13 May 2013 he failed to exercise sufficient control over the business of Docklands and City Lettings Limited with the result that the company failed to protect deposits received from tenants on behalf of landlords in accordance with the provisions of the Housing Act 2004.
Docklands and City Lettings Limited went into liquidation on 13 May 2013 with assets of £3,309, liabilities of £352,828 and a deficiency of £349,519.
Mr Davison did not dispute that Docklands and City Lettings Limited did not deal with tenants’ deposits in accordance with the Housing Act 2004, which requires deposits to be retained or insured via an approved scheme. Instead, the money was used for the benefit of the company. As a result 23 tenants and landlords have been exposed to losses of £40,456.
Commenting on the case, Robert Clarke, Head of Company Investigations North, said:
The public should be assured that the Insolvency Service will seek to disqualify the directors of companies that do not obey the law and use other people’s money for the benefit of the company.
Notes to editors
Docklands and City Lettings Limited (CRO No 07054789) was incorporated on 23 October 2009 and entered into Creditors Voluntary Liquidation on 13 May 2013 with assets of £3,309 and liabilities of £352,828.
Paul Davison is of Leeds and his date of birth is 3 April 1965.
The disqualification undertaking was accepted by the Secretary of State on 04 December 2014 and will come into force on 25 December 2014.
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.
All public enquiries concerning the affairs of the company should be made to: Sarah Heath, Company Investigations North, 2nd Floor, 3 Piccadilly Place, London Road, Manchester, M1 3BN. Tel: 0161 234 8486 Email: email@example.com.
Published: 23 January 2015
From: The Insolvency Service