Insolvency Services News

Poor record keeping nets 9 year ban for Birmingham businessman

The County Court at Birmingham has handed a nine disqualification order to John Alexander Ferguson (43) for failing to maintain, preserve and deliver up records as he was required to do, following the liquidation of Allied Commercial Factors*Limited. ...

July 7th, 2017|

No way for construction company directors to dig their way out of bans

Two directors of an Inverness-shire construction and civil engineering business have been disqualified from running or controlling any further*companies. The Inverness Sherriff Court handed an eight year disqualification to Donald Cameron (37), whi...

July 6th, 2017|

End of the road for director of second-hand car business

Kevin Vincent McMonagle, the director of used car dealership Marshalls of Kilmarnock Limited has been disqualified for seven*years.

An Insolvency Service investigation found Mr McMonagle (48) had caused the company to trade in a manner which breached consumer protection legislation, causing a loss to customers in the region of ?95,000.

On 21 January 2016, Marshalls of Kilmarnock, with liabilities of ?544,309 was placed into compulsory liquidation following a winding up petition lodged by H M Revenue & Customs. Kevin McMonagle was the sole director of Marshalls of Kilmarnock Limited at that time.

Following the liquidator?s appointment, the investigation found that from 4 June 2014 onwards, Trading Standards received 36 complaints from customers which resulted in quantifiable losses to 17 customers of about ?95,000.

The complaints related to:

not paying or returning money owed to customers
selling motor vehicles which were not of satisfactory quality
omitting to transfer vehicles registration documents
failing to pay off finance agreements of customers trading in their vehicles

On 4 December 2014, officers from Trading Standards met with Mr McMonagle to discuss their concerns regarding the level of complaints against the company. Following further complaints, Trading Standards applied to the Court for an enforcement order after Mr McMonagle stopped co-operating with them during March 2015.

On 15 April 2015, Kilmarnock Sheriff Court issued an interim enforcement order to prevent continued breaches and protect customers following which Mr McMonagle surrendered his licence to sell second hand cars on 28 April 2015. This caused the company to cease trading.

The undertaking that Mr McMonagle has now given to the Secretary of State for Business, Energy and Industrial Strategy means he will not able to act as a director of a company for seven years from 26 June 2017.

Robert Clarke, Head of Company Investigation at the Insolvency Service said:

When directors of a company do not comply with legislation that is designed to protect customers, and avoidable losses result, the Insolvency Service will fully investigate the circumstances and take action where appropriate.

In this case, a significant number of customers have been left out of pocket thanks to Mr McMonagle?s disregard of protective legislation and it is appropriate that their disqualification is for a significant period of time.

This ban should serve as a reminder to any directors tempted to do the same: the Insolvency Service will vigorously investigate you and seek to remove you from the marketplace.


July 5th, 2017|

Disqualification extended for Stoke joiner who breached directorship ban

Michael Ashton is disqualified from running any company for ten years for continuing to act as a director while*disqualified.

Mr Ashton gave a disqualification undertaking to the Secretary of State for Business, Energy and Industrial Strategy, not to run or control a company without leave of the Court until 14 May 2027.

An investigation found that Mr Ashton had been the dircector of MA Partitioning, Ceilings & Joinery Ltd in breach of a previous five year disqualification undertaking that had been due to expire on 6 October 2018. MA Partitioning failed to submit statutory returns to HM Revenue and Customs and traded to their detriment. HMRC were owed ?516,057 at liquidation or in the alternative he failed to ensure that the company deregistered for VAT, PAYE and CIS.

In 2013 as a director of CNT Ancillaries Ltd, Mr Ashton had failed to ensure the company maintained adequate accounting records and failed to ensure the company complied with its statutory obligations to HM Revenue and Customs, causing the company to trade to their detriment. This misconduct had resulted in the earlier director disqualification undertaking.

Aldona O? Hara, Investigation Leader, Insolvent Investigations Midlands & West at the Insolvency Service, said:

This result should make it very clear to disqualified directors who ignore their disqualification undertakings and continue to act as directors that they will be vigorously pursued by the Insolvency Service.

The length of the undertaking in this case sends a clear message to the business community that such actions will not be tolerated. In addition, directors who fail to ensure HMRC are treated on an equal basis with other classes of creditor gain an unfair advantage over those companies who pay their taxes correctly and on time.

They can expect to be investigated by the Insolvency Service and enforcement action taken to remove them from the market place.


July 5th, 2017|

Company director ban for Deputy Lord Lieutenant of Nottinghamshire

Edwin Alexander Maxwell has signed an undertaking preventing him from being directly or indirectly involved in the promotion, formation or management of a company for three*years.

Mr Maxwell was the sole director of E.A.M. Electrical Limited which dealt with electrical installations.

The company went into liquidation on 28 April 2015 owing ?60,421 to creditors, of which ?52,929 was due to HM Revenue & Customs in respect of PAYE/NIC/RTI, VAT and Corporation Tax. This was in respect of liabilities going back to the tax year 2012/2013.

Commenting on the disqualification, Aldona O?Hara, Chief Investigator at the Insolvency Service said:

Directors who fail to ensure that HMRC are treated on an equal basis with other classes of creditor gain an unfair advantage over those companies who pay their taxes correctly and on time. They can expect to be investigated by the Insolvency Service and enforcement action taken to remove them from the market place.


June 30th, 2017|

Bans for 1980’s pop group manager and bass player

The business manager and bass player for the 1980's pop group UB40 have been banned from being company directors for 11 years and four year*respectively.

David Parker, the business manager of UB40 and a qualified tax accountant, gave a disqualification undertaking to the Secretary of State for Business, Energy and Industrial Strategy on 15 June 2017, four days into a disqualification trial.

On the same date, Earl Acton Falconer, UB40?s bass player also gave a disqualification undertaking to the Secretary of State, which prevents him from managing or controlling a company without leave of the Court until 5 July 2021.

Lanval Reginald Storrod who was also connected with the band gave a disqualification undertaking to the Secretary of State, which prevents him from managing or controlling a company without leave of the Court until 5 July 2021.

The voluntary undertakings were given during a trial that commenced on 12 June 2017, in which a number of witnesses gave evidence, including UB40?s Terence ?Astro? Wilson and his wife Dawn Wilson.

The misconduct accepted by David Parker, was that he breached his fiduciary duty as a director of Reflex Recordings Ltd (Reflex) by deliberately and knowingly causing the dissipation of ?252,980 of company assets between 9 December 2013 and 18 December 2013, without making due provision for subrogated rights and/or claims of at least two creditors. The dissipation was at a time when Reflex was insolvent and Mr Parker knew about the subrogated rights and/or claims of at least two creditors.

The misconduct accepted by Mr Falconer and Mr Storrod, was that each breached their fiduciary duties as directors of Reflex by abrogating their duties resulting in or, in the alternative, by allowing, the dissipation of ?252,980 of company assets between 9 December 2013 and 18 December 2013, without making due provision for subrogated rights and/or claims of at least two creditors. The dissipation was at a time when Reflex was insolvent and they knew, or ought to have known about the subrogated rights and/or claims of at least two creditors.

Reflex?s assets consisted of the music catalogues of UB40, which were charged to a bank. The company conducted business in regard to the affairs of UB40 including receiving royalties in connection with the catalogues. On 18 December 2013 Reflex entered administration following the appointment of administrator by the Court.

Susan MacLeod, Chief Investigator, Insolvent Investigations Midlands & West at the Insolvency Service, said:

In investigating insolvent companies, the Insolvency Service always looks very closely at individuals who demonstrate a disregard for creditors and appropriate action is taken where wrongdoing is uncovered.


June 30th, 2017|
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