Home » Testimonials » Director Disqualification » Testimonial: Director Disqualification investigation avoided for alleged failure to take reasonable steps to protect and safeguard tenancy deposits and causing the company to use unprotected tenancy deposit funds for general company costs.

Testimonial: Director Disqualification investigation avoided for alleged failure to take reasonable steps to protect and safeguard tenancy deposits and causing the company to use unprotected tenancy deposit funds for general company costs.

“I would recommend anyone who is being pursued for Director Disqualification proceedings to speak to NDP.”

NDP were contacted by the Director of an Estate Agency Company, who had received correspondence from the Insolvency Service, who were investigating the Director’s conduct in his Company, and whether director disqualification proceedings should be brought against him. The Insolvency Service were alleging, in particular, that the Director had failed to ensure that the Company had taken reasonable steps to protect and safeguard tenancy deposits and caused the Company to use unprotected tenancy deposit funds for general Company costs. This testimonial details the steps we took to convince the Insolvency Service not to proceed with the case.

The details of this director disqualification case

The Company had agreed to purchase another Estate Agency which had a number of tenancy deposits protected under an Insurance Backed Tenancy Deposit Scheme. Following acquisition of the Estate Agency, the tenancy deposits were transferred to the Company and should have been protected and safeguarded following its transfer. This did not appear to have happened, and the transferred deposit monies were then allegedly used for general Company costs.

Mandeep Nagra, one of our senior director disqualification solicitors, met the Director to take his detailed instructions and gather all relevant evidence including witness statements from third parties, in order to prove that it was his co-Director who was in fact culpable. In preparing representations to the Insolvency Service, Mandeep prepared a lengthy affidavit with a number of exhibits in support, setting out in detail the Director’s involvement in the Company and the circumstances surrounding the transfer of the tenancy deposits to the Company, and why he should not be pursued by the Insolvency Service.

Following receipt of the lengthy representation made to the Insolvency Service on behalf of the Director, they wrote back to confirm that they did not propose to take disqualification proceedings against the Director.

The Director was delighted with the outcome:

“NDP was recommended to me. I initially spoke with Neil Davies who listened and understood the situation instantly. I had spoken to a couple of other firms and knew straight away that NDP was best placed to represent me. Neil provided the strategy for our defence and Mandeep worked diligently & tirelessly throughout. Mandeep’s expertise and knowledge of how The Insolvency Service Operates was vital in providing a substantive response to the Proceedings. I would recommend anyone who is being pursued for Director Disqualification proceedings to speak to NDP.” Mr S.

Contact our Director Disqualification specialists if you have received a letter from the Insolvency Service.

It is important when you receive a letter from the Insolvency Service, threatening Director Disqualification proceedings, to act promptly, and to seek specialist legal advice. This case shows with the right evidence and arguments in support that investigations from the Insolvency Service can be dropped.

If you are a Director facing an investigation by the Insolvency Service for alleged misconduct 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.