End of the Road for Motorbike Dealer – 9 years Director Disqualification
This recent press release from the Insolvency Service confirms that Mr Paul Wexham (‘Mr Wexham’) of Cheltenham provided a Director Disqualification Undertaking for a period of 9 years commencing from 15 March 2016. His company, Cotswold Classics Limited (‘the Company’), a classic motorcycle dealership, was found to have sold on customer motorcycles, without passing on the proceeds of sale and to have taken deposits for motorcycles that were never supplied. The case demonstrates how seriously the authorities take such activities.
The Details of This Director Disqualification Case
The Company was placed into creditors’ voluntary liquidation on 9th May 2014 owing creditors over £181,000.00, money which was used by the Company to continue its trading. In addition, from October 2012 to the date of liquidation Mr Wexham was found to have received a sum of over £175,000.00 from the Company.
Given that Mr Wexham had not paid creditors, and had also received a substantial sum, it is no surprise that Robert Clarke, Senior Investigator at the Insolvency Service said:
“The Insolvency Service will rigorously pursue company directors who deliberately breach the trust of customers.
The undertaking signed by Mr Wexham sends a clear message to other company directors that if they run a business in a way that is detrimental to either its customers or its creditors, they will be investigated by the Insolvency Service and as a result may be subject to a lengthy period of disqualification.”
Our Comments on This Director Disqualification Undertaking
As Director Disqualification specialists, we believe that this is an unsurprising outcome. Ripping off customers, possibly keeping an insolvent business running with customers’ monies whilst lining your own pockets is a fairly sure way to be disqualified as it is very much in the public interest.
It may be the case (and we would not be surprised to hear) that Mr Wexham is may also be facing prosecution by the Police or other authorities for his actions.
Contact us if you are Facing Director Disqualification
It is always the case that the earlier you seek and obtain legal advice when you are first written to by the Insolvency Service about a director disqualification investigation, the better. That is so that we are better able to advise you as to your options and the best way forward.
Although the outcome of this case is of no surprise, there are, in our experience, many cases where correct presentation of the facts to the Insolvency Service can result in a reduced period of disqualification or the charges being dropped completely. Click here for some testimonials.
Why not contact us or call us today on 0121 200 7040 or email to us a copy of the letter that you may have received from the Insolvency Service investigating your conduct. When you initially speak to NDP, it will be at no cost and no obligation to you. No hole is too deep!