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 companys business or protect client deposits.
Mr Davidsons 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 peoples money for the benefit of the company.