INSS/XXX/2003 14th November 2003
HUSBAND AND WIFE BOTH BANNED FOR 11 YEARS
The directors of a sale of and servicing of cars/running racing team/ hospitality events business that failed with total debts estimated at around 802,000 has given an Undertaking not to hold directorships or take any part in company management for 11 years each .
The Undertakings by Jack Reginald Seaton Newland, age 56 and Phillipa Bente Newland, age 42 of, Abington Road, Standlake, Witney, Oxfordshire were given in respect of their conduct as directors of Arrowstar Racing Limited, which carried out business from premises at Bicester Race Headquarters, 7 Wedgewood Road, Bicester, Oxfordshire.
Acceptance of the Undertakings on 5 November 2003 prevents Jack Reginald Seaton Newland and Phillipa Bente Newland from being directors of a company or, in any way, whether directly or indirectly, being concerned or taking part in the promotion, formation or management of a company for the above period.
Arrowstar Racing Limited was placed into voluntary liquidation on 30 October 2001 with estimated debts of 802,620 owed to creditors.
The Insolvency Service, on behalf of the Secretary of State for Trade & Industry, has responsibility (under Section (6) of the Company Directors Disqualification Act 1986) for the investigation of the conduct of directors of failed companies and for the disqualification of those who are considered to be unfit to be involved in the management of companies in the future.
Matters of unfit conduct not disputed by Jack Reginald Seaton Newland and Phillipa Bente Newland: -
Schedule of unfit conduct
A) They caused Arrowstar to trade at the risk, and to the detriment of, the creditors generally from 1 January 2001.
B) They failed to ensure that Arrowstar kept and preserved adequate accounting records in accordance with Companies Act 1985 requirements or failed to deliver up such records when required to do so by the liquidator.
C) They failed to ensure that Arrowstar fulfilled its statutory obligations in respect of taxation.
D) On 20 December 2000 Arrowstar was given written notice by Caterham Cars Ltd that Arrowstar s authorisation, as a Caterham agent would cease in two months. They caused or allowed Arrowstar to make false or misleading representations that it was an Authorised Caterham Dealer after the notice had expired.
E) In breach of Section 216 of the Insolvency Act 1986, they formed and operated a partnership in the name of Arrowstar Racing following the liquidation of Arrowstar Racing Limited, of which they had been a director.
Notes to editors
1. The Insolvency Service is an executive agency of the Department of Trade and Industry with responsibility for both the regulation of Insolvency Practitioners and for company directors disqualifications.
2. Insolvency Practitioners are authorised to deal with the administration of a range of company insolvency procedures including administrations and administrative receivership and creditors voluntary liquidation. Insolvency Practitioners are required to report to the Insolvency Service on the conduct of company directors work in each of these proceedings with a view to identifying behaviour that might make these directors unfit to be involved in company management in the future.
3. The Insolvency Service considers the voluntary practitioners reports and, where appropriate, will investigate the conduct of directors with a view to taking disqualification proceedings on behalf of the Secretary of State.
4. A court can disqualify directors from directorships and involvement in the management of companies for between two and 15 years for unfit conduct. If a director breaches a Disqualification Order they can be prosecuted and may be punished by a fine, a prison sentence of up to two years, or both, and may be made personally liable for the company debts.
5. Directors who accept that their conduct is unfit can give an Undertaking to the Secretary of State that they will not become involved as a director or in the management of a limited company for an agreed period of between two and 15 years. This avoids a court process, but the penalties for breach of an Undertaking are the same as for breach of a court order.
6. Companies House maintains a public register of disqualified directors that can be viewed at www.companieshouse.gov.uk.
Addresses given are those correct at the time of the company failure, but may not now be current.
7. Members of the public who think that they know of any person who is acting in breach of a Disqualification Order or Undertaking should report that person s details to The Insolvency Service Disqualified Directors Hotline on 0845 601 3546 (24 hour message service). General enquires to The Insolvency Service should be addressed to the General Enquiries Help line on (020 7291 6895).
For further information about the Insolvency Service and disqualification see www.insolvency.gov.uk
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