How did Neil Davies & Partners help a director respond to receiving an Insolvency Service questionnaire and avoid director disqualification?
NDP were contacted by the director who had received correspondence from the Insolvency Service, in particular a questionnaire to be completed by her, in order to help them in their investigations to consider whether the director’s conduct over a Bounce Back Loan (BBL) would merit disqualification proceedings against her.
What was the focus of the Insolvency Service’s investigation?
The initial area of investigation of the Insolvency Service was whether there was any misconduct in relation to the company applying for a BBL, and in particular whether the company was trading or not at the time of the BBL application, and therefore eligible for the BBL or not.
It was important for the director to answer the set of questions very carefully, as her answers were being considered with a view of bringing director disqualification proceedings against her.
Who led the legal response to the Insolvency Service?
Before completing the questionnaire, Mandeep Nagra, senior solicitor at Neil Davies & Partners, requested from the Insolvency Service all the relevant evidence which they had against the director. Once this was received, Mandeep attended on the director to help her carefully complete the questionnaire.
What was the director’s position regarding the Bounce Back Loan application?
According to the director, she claimed that she had no involvement in the BBL application process, including the completion of the BBL application form, and that it was applied for by her co-director. It was therefore important when answering the questionnaire on her behalf that this was highlighted, and also that she was not in a position to review or verify the information provided when the BBL application was submitted.
It was also important to highlight to the Insolvency Service that she was never involved in the financial decision-making of the company, and that her role was merely a marketing role, reporting to her co-director.
Did the Insolvency Service accept the initial response?
After the director’s questionnaire was submitted to the Insolvency Service, they replied asking a series of further questions, questioning in particular her role in the company, and what steps she had taken to ensure that she kept herself informed of the affairs of the company.
What additional evidence was provided to support the director?
Mandeep subsequently obtained from the director a copy of her contract of employment, confirming her marketing role and confirming that she had no financial duties and responsibilities in the company. This was sent to the Insolvency Service, and when replying back we also reiterated that it was the co-director who was responsible for the financial running of the company.
Was the director found culpable for misconduct?
In the circumstances, it was argued that the director could not be held responsible for any alleged unfit conduct, given that she was never involved in the BBL application process and was also never involved in the financial decision-making of the company. Based on this, we invited the Insolvency Service to discontinue the director disqualification investigation against the director, arguing that she could not be made culpable and that it was not in the public interest to continue to pursue her.
What was the outcome of the investigation?
The Insolvency Service, based on the above arguments and the evidence presented on behalf of the director, subsequently made the decision to discontinue the investigation against our client.
What did the director say about the outcome?
The director was delighted with the outcome:
“Huge thanks to Mandeep for helping me navigate the director disqualification process with clarity, calm, and a solid strategy. From our first call, I felt reassured that I was in good hands. He broke everything down into plain English, was always quick to respond, and gave me the confidence to handle a stressful situation. As a result, the case was ultimately dismissed. I wouldn’t hesitate to recommend him to anyone going through similar situation.”
Why does this case matter for other directors facing disqualification?
This case shows the importance of not giving up against the Insolvency Service and providing them with on-going strong arguments as to why director disqualification proceedings should not be brought against an individual, with strong evidence in support. Take a look at more of our testimonials.
If you are a director facing an investigation by the Insolvency Service, then please get in contact with our experienced team of director disqualification and regulatory solicitors or call us on 0121 200 7040 .
Frequently Asked Questions
What is a Bounce Back Loan and why is it being investigated?
Bounce Back Loans were introduced by the UK government to support small businesses during the COVID-19 pandemic. Investigations typically focus on whether the business was trading at the time of application and whether the loan was obtained legitimately.
Can a director be disqualified for a Bounce Back Loan taken by someone else in the company?
Yes, but only if the Insolvency Service can show that the director was involved in misconduct or failed to exercise proper oversight. If a director had no involvement in the loan application and no financial responsibilities, they may not be held culpable.
What should I do if I receive a questionnaire from the Insolvency Service?
Seek legal advice immediately. Your responses may be used to support disqualification proceedings. A solicitor can help you request the evidence against you and guide you through completing the questionnaire accurately.
Does the Insolvency Service always proceed with disqualification after an investigation?
No. If strong evidence is presented showing the director was not involved in misconduct, the Insolvency Service may choose to discontinue the investigation, as they did in this case.
How can Neil Davies & Partners help with director disqualification cases?
Our team, including senior solicitor Mandeep Nagra, specialises in defending directors facing regulatory scrutiny. We provide strategic advice, evidence gathering, and direct engagement with the Insolvency Service to protect your position. Take a look at some of our other testimonials.
