Changes to the Corporate Insolvency and Governance Act were due to expire on 30 September 2020. These measures from the Corporate Insolvency and Governance Act have been extended to relieve pressure on businesses dealing with coronavirus. These are summarised below;
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On 4 December 2020 Wardells Design Limited and Camp Partners Limited were wound up in the public interest, having come to the attention of the insolvency Service through the investigation of associated companies.
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The insolvency Service have the power, with the court to wound up companies in the interest of the public (they do not have to be insolvent).

The Company received £600,000 from investors, but all of the funds were removed from the companies’ bank accounts.
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The two companies were wound up by the court on the grounds they had been incorporated or used as vehicles for fraud with their sole purpose being to receive monies wrongly obtained as investments from members of the public.
Read the full press release here >

Elia Bols (32) now living in Australia, was director of AMS Marketing Limited, a telephone marketing company incorporated in January 2016.
The Telephone Preference Service (TPS), received 71 complaints and the nformation Commissioners Office (ICO) received a further 32 complaints for unsolicited call.
The ICO informed Elia Bols that a fine of £100,000 would be issued, but the company was wound-up in the courts with the fine outstanding. Further joint investigations and action against the director  resulted in Elia Bols being disqualified for 6 years from acting as a director or directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company.

As of the 26 November 2020 , Andy Curry, Head of Investigations at the ICO said:"Our work with the Insolvency Service has seen the successful disqualification of 17 directors who have shut their business down to try and avoid paying a fine for illegal marketing activity".
Read the full press release from the Insolvency Service here >

Closing a business does not necessarily negate the responsibilities and duties of directors. Directors often think we as Insolvency Practitioners have a magic wand, but Directors should seek professional advice, and be mindful action against them as directors may be taken for wrong doing, even when a company has been wound up or dissolved.

The two company directors who provided prospective shareholders with false information to secure millions in investments have been banned for a total of 17 years. Lee Anthony Skinner (60) has been banned for 10 years, while Karen Ferreira (60) has been disqualified for 7 years.

Full details of the disqualification can be found here >

Husband and wife, Paula Kelly (55) and Paul Anthony Kelly (58) are both banned from acting as directors of a company or directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company.
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Directors of Flexitell Limited which managed several nightclubs and pubs in Blackpool under the trading name Ma Kelly’s, prior to administration have been handed a 7 year directors disqualification.

Directors had not maintained or preserved accounting records throughout the life of the company. This meant the directors could not explain or verify the business turnover, the tax owed or directors loan accounts. It is a serious offence not to keep proper accounting records.

Read the full press article from the insolvency service here >