Examples of instances where directors have been disqualified

 

For what reasons do UK directors get disqualified?

This article follows on from my earlier article on director disqualifications to give some idea as to what sort of conduct the authorities consider are worthy of disqualification.

Here are some reported examples of where directors have been disqualified (click on the links in this article to be taken to more information if you should need it)…

 

Alleged fraud!

An orchestrated attempt to defraud HMRC through the creation of a number of companies to obtain illegal VAT refunds – a blatant fraud on HMRC .

Carousel VAT fraud

Misleading investors

Misleading of investors and misuse of their money

Fresh air invoicing to obtain finance from a bank

Under recording of cash sales resulting in incorrect vat returns being submitted and the non payment of vat

And another similar case!

Vat evasion

Tax evasion

 

Not doing the right thing in their company at a time of insolvency

Removing assets from the company for their own personal benefit

Unexplained transfers of money out of the company  and accepting money from customers for goods/services not provided

Payment of illegal dividend  and transfer of funds to an associated company

Diversion of money that the company was entitled to into the director’s own bank account

Transfer of large sums of money to themselves 

Another case of transferring large sums of money out of the company to companies they controlled

Using money from the sale of customer assets for their own purposes

Selling company assets for personal benefit

Once a company is either known by the directors to be insolvent (or where the directors should know it’s insolvent), it is vital that the directors don’t do anything that is clearly not in the creditors’ interests.

Perhaps these disqualifications could have been avoided had the directors taken advice from a licensed insolvency practitioner at the right time (and followed that advice)?

 

Failing to do the basics/comply with laws applying to the ongoing business!

Failing to keep proper books and records to explain the company’s transactions

Misusing company funds for their own benefit 

Another case of misusing company funds for own benefit

Breaking the law on an ongoing basis

Failing to report conflicts of interest

Another failure to comply with the law applying to their business

Acting as the frontman for a person who is banned.

Not doing everything they needed to do to protect vulnerable members of the public

Failing to put in correct tax returns

Breaches of the Privacy and Electronic Communications Regulations

Unfair trading practices and failure to repay the public on a timely basis 

Breach of a previous ban, including the banning of the disqualified’s frontman

Failure to comply with environmental laws

Failure to maintain proper books and records

Breaking the law by employing illegal foreign workers

 

Other reasons

A series of formal insolvencies each with the same pattern

Come back here often, I will keep adding examples.

 

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