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Disqualification for directors for misrepresentation and incorrect VAT returns (9 August 2016)

Date: 09/08/2016
Duncan Lewis, Crime Solicitors, Disqualification for directors for misrepresentation and incorrect VAT returns

The directors of a company which sold advertising space in magazines and diaries have been disqualified for a total of 26 years.

The Court at Manchester District Registry made disqualification orders against married couple Mark William Taylor, 49 and Kelie Ann Taylor, 32 – both of the Wirral and directors of Global Media Corporation Limited (GMC). They were disqualified for 15 years and 11 years, respectively.

GMC was wound-up by the Court on 9 January 2014, following the presentation of a petition by the Secretary of State for Business, Innovation and Skills on the grounds of public interest.

Mr Taylor was banned for 15 years after the Court found that, between March 2010 and October 2013, he acted as a director of GMC following a previous disqualification.

Investigators found that, between March 2010 and October 2013, Mr Taylor caused GMC to trade in a manner lacking commercial probity, in that the company made misleading marketing claims relating to it acting on behalf of or having an affiliation with the Police and/or Emergency Services.

GMC also provided misleading information in respect of the benefit of placing an advertisement and/or the beneficiaries of any monies received from advertisements.

GMC also failed to provide full terms and conditions to prospective customers prior to the company advising that a contract had been formed. The company then attempted to enforce the terms and conditions, such as charging Cancellation Charges.

Mr Taylor was also found to have caused or allowed GMC to neglect its obligations to HMRC by submitting incorrect VAT returns, failing to ensure that GMC accounted to HMRC for VAT charged to customers – and by failing to ensure that GMC was registered for VAT for the full period that it charged VAT.

Mrs Taylor was banned for 11 years after the court found that, between March 2010 and October 2013, she had allowed Mr Taylor – a person disqualified from acting as a director – to do so with regard to GMC.

The investigation also found that Mrs Taylor was unable to provide information regarding key areas of GMC’s affairs – and allowed Mr Taylor to exercise control over activities, such as selling and finances, and failed to monitor or control these activities. She also allowed him to exercise predominant influence over key strategic decisions, such as the issue of preference shares and cessation of trade.

In addition it was found that, between March 2010 and October 2013, Mrs Taylor caused or allowed GMC to trade in a manner lacking commercial probity, including causing or allowing GMC to neglect its obligations to HMRC by submitting incorrect VAT returns, failing to ensure that GMC accounted to HMRC for VAT charged to customers – and by failing to ensure that GMC was registered for VAT for the full period that it charged VAT.

Official Receiver Ken Beasley said:

“In failing to take an active role in the company’s affairs, Mrs Taylor – as the sole formally appointed director – failed to discharge her responsibilities to the company, resulting in a person disqualified from acting as a director so acting in this company.

“This is the second lengthy ban received by Mr Taylor in relation to his conduct as a director of limited companies – and this time, he has had the maximum ban imposed.

“The Insolvency Service has strong enforcement powers – and we will not hesitate to use them to remove dishonest or reckless directors from the business environment, as has been demonstrated in this case.”

Duncan Lewis Business Crime Solicitors

Duncan Lewis business crime solicitors can advise at any stage of a charge involving business offences, including investment fraud, false accounting, tax and VAT evasion, embezzlement, Ponzi schemes, pyramid schemes, IT crime and white collar crime.

There are Duncan Lewis offices nationwide and in most major cities – and a Duncan Lewis business crime solicitor can advise at the start of an investigation or before an investigation, or before charges are brought.

Our specialist business crime team can also liaise with investigating and prosecuting authorities, such as Insolvency Service, SFO, FCA, BIS, HMRC and City of London Police.

Duncan Lewis can also advise on Confiscation Orders under the Proceeds of Crime Act (POCA).

For expert legal advice on business offences, call Duncan Lewis business crime solicitors on 0333 772 0409


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