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 OLoughlin 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 OLoughlin (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 OLoughlin 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fulfil, to the detriment of its customers, and failed to deal with its tax affairs, resulting in this privilege being withdrawn.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.