The Department of Trade and Industry on January 6 announced that a disqualified director who continued to be involved in the management of companies despite his disqualification has been fined £200,000 and banned from acting as a director until 2012.
The director was disqualified for unfitness under the Company Directors Disqualification Act 1986 on February 25, 2000, for seven years following collapse of two companies. Following a complaint to the Insolvency Service hotline, the DTI discovered that despite resigning from all his directorships he continued to be extensively involved in the management of a number of companies by hiring and firing employees, instructing professional decisions. He pleaded guilty to being involved in the management of four companies whilst disqualified, contrary to s.13 of the 1986 and was sentenced at Blackfriars Crown Court on January 6. Costs of £29,000 were also awarded against him.
“Sweet & Maxwell’s Company Law Newsletter” 20.1.04
