Two directors have been disqualified for five years for taking a total of £59,000 from company funds instead of paying creditors after their business got into financial difficulties.
Neither director disputed that they took the money at a time when the company’s tax liabilities had risen to more than £109,000 and when a trade creditor had obtained a court judgment against them for over £16,000.
They have both given undertakings not to act as company directors for five years. Vicky Bagnall, Director of Investigation and Enforcement Services at The Insolvency Service, said: “The Insolvency Service will rigorously pursue company directors who seek to benefit themselves ahead of their creditors by extracting company funds when others are not being paid.
”Fair treatment of creditors is essential for business confidence, which is, in turn, essential for economic growth.
“The protection of limited liability should only be available to those who comply with their obligations as company directors. If those obligations are ignored, that protection will be withdrawn.”
Nick has become particularly known for dealing with insolvency disputes, insolvency investigations (particularly in a fraud context) and technical insolvency advice.
In addition to acting for individuals and company directors (including defending insolvency related claims and disqualification proceedings), he has provided technical advice on insolvency-related matters to clients including insolvency practitioners, banks, local authorities, HM Revenue & Customs, landlords and trade creditors. Nick also has considerable experience in advising businesses in relation to complex asset and debt recovery issues.
Nick has dealt with a number of high profile bankruptcy and insolvency cases including acting for Michael Barrymore in relation to his bankruptcy, and advising the trustee in bankruptcy of Asil Nadir.
Originally from Portsmouth, he is a lifelong supporter of Portsmouth City FC and returned to the city in 2013 to join Verisona Law after 20 years of working in London. He is married and has two young sons. When not indulging their interests in cars and football, Nick likes to get out on boats in the Solent.
He has been ranked by Chambers and Partners ‘Client’s guide to the UK legal profession’ as a specialist in his field for a number of years. Chambers guide for 2015 referred to him as a practitioner with "a well-deserved reputation for contentious insolvency work."
Nick is a fellow of the Association of Business Recovery Professionals (R3), to whom he has also lectured, and was elected to R3’s Southern Region Committee in December 2013. He is also a member of the Insolvency Lawyers Association.
- Trained at a boutique insolvency and litigation firm, Moon Beever, in central London.
- Qualified with Moon Beever in 1996 and made up to partner there in 2000.
- Moved to Blake Lapthorn in London where he was made up to partner and latterly headed up the Insolvency and Corporate Recovery department.
- Headed up the Insolvency and Corporate Recovery department at Howes Percival from 2010 to 2013.
- Joined Verisona in Portsmouth in 2013.
- Financial and money advice
- Enquiries and claims by trustees in bankruptcy, the Official Receiver, the Insolvency Service and liquidators (including possession action in relation to residential properties)
- Personal guarantees, statutory demands, bankruptcy petitions and individual voluntary agreements (IVAs)
- Enquiries and claims by the Insolvency Service Official Receiver and liquidators
- Directors duties
- Actions under the Directors Disqualification Act
- Advice regarding rescue and refinancing options (including administration and CVAs)
- Statutory demands and winding-up petitions
- Insolvency related disputes and technical issues
- Technical insolvency advice
- Insolvency related litigation and disputes
- Applications to court under the provisions of the Insolvency Act 1986 and Insolvency Rules 1986
- Director disqualified for paying themselves instead of creditors
- Insolvency Practitioners and Conditional Fee Agreements (CFAs) - Issues reviewed in recent judgment
- Verisona Shortlisted for 'Insolvency Law Firm of the Year'
- Court considers correct approach to conflicting evidence (Fielding and another v Hunt (acting as liquidator of the Burnden Group Ltd))
- Refusing a liquidator’s wrongful trading application
- Sole trader or partner – are you at risk?
- Options for a faltering business
- Major debtor gone bust?
- How prompt action could save your business
- Director's responsibilities if your company is failing
- Buying a business in distress?
- Compensation Orders against Disqualified Directors
- E-Valuate for the Accountancy Profession
Director, Head of Insolvency and Business Turnaround
T: 023 9231 2050 or 07718 159136