Disqualified as a Director for 12 years
BEING DISQUALIFIED AS A DIRECTOR FOR 12 YEARS FOR RAISING FALSE INVOICES AND TRANSFERRING CRIMINAL PROPERTY
In a recent press release regarding a director disqualification case, the Insolvency Service reported that a director of Red Dog Motorcycles Limited (“RDML”) was disqualified as a director by the Criminal Court for a period of five years. That period was then increased by the Civil Court to twelve years.
It would appear that the director was separately convicted by the Criminal Court for raising false invoices and causing RDML’s bank account to be used to convert and transfer criminal property of at least £500,000.00.
Upon Criminal conviction the director was disqualified as a director by the Criminal Court for a period of five years. That was under section 2 of the Company Directors Disqualification Act 1986 (Disqualification on conviction of indictable offence).
As the conviction of the director was serious the Official Receiver sought a lengthier period of disqualification (as the Official Receiver / Secretary of State is entitled to do) in the Civil Courts. The Court agreed and made a twelve-year disqualification order.
COMMENT ON THE IMPLICATIONS OF THIS “DISQUALIFIED AS A DIRECTOR” CASE.
This case goes to show that an abuse of a limited company is not going to be tolerated by the Courts or by the Secretary of State for Business, Innovation and Skills. In addition, the Courts (both Criminal and, separately, Civil) can be asked in these circumstances to make a director disqualification order. The consequences for the director of Red Dog Motorcycles Limited, as a result of being disqualified as a director for 12 years, will likely have been costly, both personally and financially.
WHAT COULD THE DISQUALIFIED DIRECTOR HAVE DONE DIFFERENTLY?
The disqualified director of RDML could have put forward representations as to his position and offered a disqualification undertaking, so as to dispose of the second set of director disqualification proceedings to save cost and the stress and even the risk, if necessary, from prison.
COULD NDP HAVE HELPED?
NDP has the strength and depth of understanding and knowledge to advise on matters of director disqualification even in what might appear to be the most difficult of circumstances, such as this case. It is imperative that the right advice is sought early. If you have a problem regarding director disqualification, you should contact us , or call us on 0121 200 7040, straight away for a free initial discussion. The earlier you get in touch, the more we can help.