• Skip to main content
  • Skip to footer
SBCA Chartered Accountants

SBCA Chartered Accountants

Chartered Accountants in Preston

Call Us Now 01772 204102

  • Facebook
  • LinkedIn
  • Twitter
  • Accountancy & Tax
  • Business Growth
  • Private Wealth
  • Who We Help
  • About
  • Our Team
  • Client Testimonials
  • Contact
  • Client Login

Incorporated rogues

5th November 2014 by Chris Bond

There is much evidence that dubious characters can masquerade as bona fide business people by calling themselves directors and wrapping themselves in the cloak of incorporation. They use limited liability status to avoid any personal, financial liability.

Stories abound of “directors” who run up debts, place their insolvent businesses into receivership, buy any useful assets from the receiver at a knock down price and start again with a new company and new directorship. Creditors are left carrying the financial responsibility for the directors’ actions.

Which is why it is gratifying to see these rogue “directors” getting their just deserts. Consider a recent case where the directors of Club Media Systems Limited were disqualified for a total of nine and a half years for failing to provide agreed services or paying company paid tax.

Garry Wayne O’Loughlin and Nicola Martin Hobson, directors of Club Media Systems Limited, based in Blackpool, which traded as a provider of digital advertising services, were been disqualified for a total of nine and a half years, for entering into agreements to provide advertising services which it was unable to provide and failing to make sure the company paid tax due to HMRC.

The disqualifications follow an investigation by the Insolvency Service.

The investigation found that Mr O’Loughlin and Ms Hobson, as directors of Club Media systems Limited, entered into agreements with customers for advertising services it was unable to provide, resulting in these customers being owed at least £22,715 at the date of liquidation.

Robert Clarke, Group Leader of Insolvent Investigations North at the Insolvency Service, commenting on the disqualifications, said:

“Companies have limited liability, which is a privilege, not a right. These two directors entered into agreements which they knew the company could not fulfil, to the detriment of its customers, and failed to deal with its tax affairs, resulting in this privilege being withdrawn.”

The company was placed into liquidation on 21 March 2012 with an estimated deficiency of £739,179.

Category iconUncategorized

Xero Gold Partners
ICAEW Chartered Accountants
Clear transparent pricing champions

Footer

Get Your Free Copy of Chris’s Book

Reflect Dream Do

Quick Links

  • Get in touch
  • Book Your Discovery Call
  • Client Testimonials
  • Blog
  • Meet Our Amazing Team
  • Work for us
  • Time. Money. Headspace.

Get Your Free Tax Planning Checklist

Business Tax Planning Checklist

Join The Preston Business Community

Preston Business Community

The Latest From Our Blog

Tax Time

Tax Time – Dates for June 2022

23rd May 2022 By Chris Bond

Tax Time

Tax Time – Dates for May 2022

21st April 2022 By Chris Bond

THE UPS AND DOWNS OF SPRING STATEMENT 2022

The ups and downs of spring statement 2022

24th March 2022 By Chris Bond

Read more from the blog

We use telephone tracking numbers to link a user’s call to the marketing channel that they originated from. This is done using cookies, you can choose to decline cookies using your browser settings if you would prefer not to be tracked. We may record calls for training or monitoring purposes.

This firm is not authorised under the Financial Services and Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services to clients because we are members of the Institute of Chartered Accountants in England and Wales. We can provide these investment services if they are an incidental part of the professional services we have been engaged to provide.

Copyright © 2022 SBCA Chartered Accountants · Privacy Policy · Terms & Conditions · Site Design by Simply Smarter Marketing