Case History – BIS v NO

Background

NO was formerly a director of three companies that all entered into insolvency.

During the course of the liquidation of one of the companies the insolvency practitioner reported a matter of concern to the Secretary of State for Business Innovation & Skills (BIS) who subsequently commenced further enquiries with a view to commencing disqualification proceedings against NO pursuant to the Company Directors Disqualification Act 1986.

The main allegation was that NO had an overdrawn director’s loan account of circa £250,000.00 and that during the period in which he paid himself this huge amount creditors of the company went unpaid.

As a result of NO’s business failings he had been declared bankrupt.

Actions

ICL Commercial Law was instructed to assist NO in making representations to BIS with a view to persuading BIS not to commence proceedings to seek a disqualification order.

ICL Commercial Law met with NO and his accountant. A detailed report was compiled with a critical time line highlighting the periods in which NO received sums from his companies directly related to accounting periods and profitability.

Following two meeting with the accountant ICL Commercial Law submitted written representations to BIS backed up with a statement from the accountant and supporting exhibits.

Result

BIS decided to take no further action.

NO has been discharged from bankruptcy and is currently running a successful business.