“I am so grateful to Mandeep for the time & effort he put in to get this positive outcome.”
This testimonial is from a grateful client for whom Mandeep Nagra, one of our Senior Solicitors, was successful in persuading the Insolvency Service not to continue with director disqualification proceedings against our client.
Background to this director disqualification case
NDP were contacted by the Director having received correspondence from the Insolvency Service, who were investigating the Director’s conduct in his failed company and whether director disqualification proceedings should be brought against him. The main area of investigation was as follows:
- The Director had breached the terms of the CBILS, in that the Company had obtained a loan of £100,000 and failed to use the loan amount (or part of it) to repay the outstanding balance of an existing BBL previously obtained by the Company.
Under the terms of the CBILS it stated that if a BBL had been taken prior to the CBILS, then that BBL must be repaid when in full receipt of the CBILS funds. The Director had accurately declared details of the BBL on the CBILS application and, on this application, it was also declared that the CBILS would be used to repay the BBL in full. When the Company entered into liquidation both the CBILS and the BBL remained unpaid.
Mandeep Nagra is instructed
Mandeep, attended on the Director and took his full instructions, and discovered that the Director had relied upon advice provided by a particular representative at the CBILS provider, who had informed him verbally that that he did not have repay back the BBL monies once he had received the CBILS loan. Mandeep also noted when inspecting the application form and terms and conditions of the CBILS loan from the provider, that they were silent on any repayment of the BBL monies and on its timing, once a CBILS loan had been obtained.
Mandeep then prepared a detailed letter of representation to the Insolvency Service, arguing in particular that had the terms and conditions of the CBILS been clear regarding the repayment of an existing BBL once a CBILS loan had been obtained, then it would have avoided any ambiguity. Furthermore, he pressed the Insolvency Service to contact the lender of the CBILS scheme, asking them to provide all their written communications, call transcripts and/or recordings of their conversations between the Director and the representative at the CBILS provider, who had given the above advice to the Director.
Ultimately, the Insolvency Service agreed to drop the Director Disqualification allegation
The Insolvency Service provided a reply to our letter of representation, stating they were contacting the CBILS provider to obtain the communications we had requested. The Insolvency Service then sent a subsequent letter stating they were proceeding with the Director’s disqualification and also proposed to apply for a compensation order.
Mandeep responded to the Insolvency Service, pointing out that they had still not provided all the communications between the Director and the CBILS provider, which was important to show the advice he had relied upon in not repaying back the BBL. The Insolvency Service then replied stating that as a result of their current investigation the Secretary of State did not propose to take the disqualification proceedings against the Director.
The Director was delighted with the outcome:
“I am so grateful to Mandeep for the time & effort he put in to get this positive outcome. This has been such a stressful time for both myself & my family but with professionalism & attention to even the slightest of details, Mandeep has been able to achieve the result that I had wished for – thanks again.”
This case shows that the Insolvency Service are prepared to drop their investigations, and the importance of pressing them for all key information and documents, to help the Director’s position.
If you are a Director facing an investigation by the Insolvency Service for alleged misconduct including a breach of the conditions of a CBILS, then please get in contact with our experienced team of Director Disqualification and regulatory solicitors on 0121 200 7040 or by email to law@ndandp.co.uk.
