Director defended from disqualification, despite several previous company failures
Richard Shepherd, our senior insolvency solicitor, has successfully defended another director disqualification investigation despite the director having a number of previous company failures.
In this case, the allegations of Unfit Conduct from the Insolvency Service related to two discrete matters:
- Non-payment of tax
- Failure to deliver up accounting records
The Background to this Director Disqualification case
The company went into liquidation owing almost £500,000 to its creditors, with HM Revenue & Customs bearing the brunt of the deficiency, accounting for almost 90% of the losses. It was not surprising therefore that the Insolvency Service (‘IS’) were keen to investigate the demise of the company.
Desperate to avoid a disqualification and preserve his current directorship, our client contacted Suky, learning of her expertise and previous successes via our website’s testimonials.
We put together a robust and detailed response. Persistence paid off!
With his usual skill and attention to detail (and the bit firmly between her teeth!), Richard set about putting together a robust and detailed response evidencing why the allegations could not be maintained. The IS was unwilling to retreat and continued to voice its concerns as to the suitability of our client to continue to as act a director.
Undeterred by the IS’s unwavering stance, we continued over the following months to systematically deal with the numerous (and often repetitive) additional enquiries raised by the IS. However, in light of our representations, the IS had no choice but to abandoned its investigation, when it finally acknowledged that it was unable to meet its own legal test to merit a disqualification,
This case tells us that with the determined and committed approach of an experienced solicitor, even a seemingly impossible case can be defeated.
Unsurprisingly, our client was overjoyed at the result, expressing his sincere gratitude to Richard for achieving a fantastic result for him. This client lived to trade another day, but we suspect this could have been a different story had our client instructed a less experienced firm.
We always tell our clients that Disqualification is not always inevitable when you have the right team in your corner.