When a company is facing serious financial pressure, it’s understandable for directors to look for a fast solution. In moments of stress, schemes offering a ‘clean break’ – handing over the company to someone else and walking away – can seem appealing. But recent investigations by the Insolvency Service show just how dangerous these promises can be.
One of the most striking examples is the group of companies involved in what’s become known as the Atherton Scheme.
The Atherton Scheme: What Happened
According to public statements by the Insolvency Service, a company called Atherton Corporate (UK) Ltd facilitated the transfer of hundreds of insolvent companies from their original directors to a third party. In most cases, this involved the appointment of a gentleman, called Neville Taylor, as director. He was appointed to more than 400 companies, often taking control for a nominal fee.
The Insolvency Service statements refer to 12 companies which entered formal liquidation. In these cases, assets totalling over £7.6 million could not be accounted for at the point of formal insolvency. Directors were reportedly told that transferring the company in this way would allow them to walk away from the debts and, in some cases, continue trading under a new structure.
But that’s not what happened. Creditors were left unpaid. Proper books and records were not maintained. And formal insolvency procedures were bypassed.
Regulatory Response: Taylor Disqualified, Liquidators Appointed
Neville Taylor has since been disqualified as a director for nine years. That penalty, according to public commentary, is seen by many as relatively light – but there are indications he is now cooperating with the Insolvency Service and with the insolvency practitioners appointed to these companies.
That cooperation appears to be helping the authorities investigate what happened – and, crucially, identify the roles played by the original directors of the companies involved.
Each of the 12 companies has had a liquidator appointed — some from the Insolvency Service, others from private insolvency firms including Grant Thornton, FRP Advisory, and Moore Kingston Smith. This variety of appointments suggests that each case has distinct issues that require detailed investigation. It also spreads the workload, rather than placing pressure on one firm to manage all investigations and claims.
The liquidators have a statutory duty to investigate the conduct of directors – including those who resigned- and maximise returns to creditors. That may include pursuing the former directors personally where there’s evidence of misconduct, breaches of duty, or improper asset transfers. These cases are ongoing, and further reports are expected.
What About the People Behind the Scheme?
While Neville Taylor has been disqualified, there has been no public action to date against the controlling shareholder of Atherton Corporate (she was also a director) or the other director. That does not mean no action is being considered – it may simply be that investigations are still underway, and it would be inappropriate to comment further until they are concluded.
The Broader Lesson for Directors
The Atherton case should be a serious warning. Directors cannot simply walk away from an insolvent company by handing it over to a third party – especially if the new controller has no real plan to protect creditors or handle matters properly. And especially where they are handling so many other directorships.
If your company is insolvent or close to it, you have a legal duty to act in the best interests of creditors. Trying to sidestep that responsibility, even if advised to do so, can leave you personally liable for company debts, subject to disqualification, or worse.
Conclusion: Ask the Right Questions Before You Act
If someone offers to take away your struggling company and ‘handle everything’, be cautious. Insolvency is a legal process for a reason. It provides structure, accountability, and protection for directors – when followed properly.
As the liquidations progress, it is likely that some of the original directors involved in the Atherton Scheme will face serious financial and legal consequences. The story is not over.
Don’t take chances. If your business is in trouble, speak to a qualified, regulated insolvency practitioner and not someone who offers to simply make the problem disappear.
Disclaimer
This article is based on publicly available information from the Insolvency Service, Companies House, The Gazette, and mainstream news sources as of May 2025. It reflects the author’s professional opinion and is intended for general educational purposes only. No allegations are made against any individuals not already subject to public regulatory findings. Directors are reminded that each case turns on its own facts, and specific legal advice should always be sought.