Directors Disqualification Proceedings

“Notice Pursuant to Section 16 of the Company Directors Disqualification Act 1986 of Intention to Commence Proceedings to Disqualify You.” 

Receiving a letter marked in the above manner from the Insolvency Service, The Department for Business Enterprise and Regulatory Reform, and the Secretary of State is possibly the most frightening thing for a professional company director, as it challenges  a professional director’s ability to work, earn money, support themselves and their family, and in fact challenges their very being on most occasions. 

The Secretary of State is robust in pursuing directors that he feels have undertaken some sort of impropriety.  Most of the time these allegations stem from the director failing to deliver up enough books and records pertaining to the operation of their company that has unfortunately failed, known colloquially as ‘books and records’ offences. The Secretary of State is by no means exact in the manner in which they undertake investigations, and often make glaring errors which regularly simply arise from the fact that they do not properly review, or at times understand the documents that they are looking at. The critical mistakes made by directors whom they are pursuing is to assist the Secretary of State without first taking comprehensive and specialist legal advice on their position and obligation to help. Essentially a company director who has done nothing untoward, and who thinks that they are fully assisting the Secretary of State’s investigation by providing information voluntarily on a wholesale basis, can be at grave risk of being disqualified, as essentially they are filling in the blanks for the Secretary of State, who will take this material and present it to the Court in the manner in which they see fit. They will not do you any favours. 

Here at Pinder Reaux we have a specialist team that deals with company offences, with specific focus placed on disqualification actions brought against company directors by the Secretary of State. The firm’s director, John Spyrou, spent much of his early career working for the Insolvency Service, the Department of Business, Enterprise and Regulatory Reform and then the Serious Fraud Office. As such, he and his team now use his experience, technical knowhow and strategic thinking to protect company directors that are being pursued by the Secretary of State for disqualification proceedings. 

Recent cases have indicated that the Secretary of State has updated its mandate and is now vehemently pursuing alleged directorial impropriety, so their letters will keep coming through the door, and they will not go away. If you have received such letters, please contact us at Pinder Reaux, for a confidential discussion and consultation. 

The fact that the letters will keep coming does not automatically mean that your right to hold the post of director is about to go up in smoke.  Provided you take pro-active steps, which includes coming to see us, we can aggressively and robustly protect your position, no matter how complex the matter may be or how worried you are. The first and hardest step is bringing us on board. Once that is completed you can leave matters in our experienced hands and we will deal with the Secretary of State for you. 

 

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