Why the client needed our help
Our client received correspondence from the Insolvency Service by way of a letter pursuant to S16 of the Company Directors Disqualification Act 1986. The Insolvency Service was enquiring into the use of a government-backed Bounce Back loan taken out by our client in the sum of £50,000.00. It was alleged that our client did not use the BBL monies for the economic benefit of the business and a 6-year period of disqualification was being sought against our client.
How we helped
Upon instruction to act on behalf of our client, we requested further time from the Insolvency Service to consider and provide a substantive reply to their allegations. Thereafter, by way of a meticulous letter, we set out the following:
- the background to our client’s company and how she had been affected by the COVID-19 pandemic
- a comprehensive breakdown of the salary payments to our client and how these were justified in relation to the Bounce Back loan
- explanatory remarks and explanation in relation to further expenditures that our client spent, which were justifiably for the company’s benefit
- overall and general legal comments, citing relevant case law, as to how our client acted reasonably in all of the circumstances and based on the facts of the matter
There was a three-month delay with silence on the matter, but we then received confirmation from the Insolvency Service that the investigation had been dropped and bounce back disqualification proceedings would not be brought against our client.
One of the most astute appointments I have ever made.A company director we successfully defended against disqualification