The director of a company which cold called small businesses and individuals for sponsorship has been disqualified from acting as a director following an investigation by the Insolvency Service.
Gemma Louise Reilly, 31, of Stockport, the director of T.I.B (North) Limited (TIB) gave a disqualification undertaking to the Secretary of State for Business, Innovation and Skills not to promote, manage, or be a director of a limited company from 18 February 2016 until 2026.
TIB, which stands for Teenage Information Bureau, commenced trading from the Stockport area around November 2010. According to Ms Reilly, the aim of the company was to promote sexual awareness in young people through the production and distribution of a booklet to schools/colleges/youth centres, the funding for which would be sought from both individuals and small businesses. Company accounts suggest that over a period of 3 years the company had a turnover in the order of 404,844. The booklet had no official endorsement.
On 3 December 2013, the Secretary of State for Business, Innovation and Skills presented a petition to wind-up the company on grounds of public interest. On 10 February 2014, eight days prior to the hearing, the company was placed into Creditors Voluntary Liquidation. A compulsory winding up order was subsequently made on 18 February 2014.
In providing an undertaking, Ms Reilly did not dispute that she caused or allowed TIB to make false and misleading statements designed to pressure individuals and/or businesses to pay for sponsorship. In addition to this, she did not dispute the allegation that she failed to maintain, preserve and/or deliver up adequate accounting records.
Commenting on the disqualifications, Ken Beasley, Official Receiver at the Insolvency Services Public Interest Unit, said:
This company received hundreds of thousands of pounds in funding from individuals and small businesses who believed that their funds were being put to good use.
Ms Reillys behaviour falls below the standards expected for responsible directors of a limited company.
The Insolvency Service has strong enforcement powers and we will not hesitate to remove directors from the business environment when they have failed to demonstrate the level of care and responsibility that is required of them.