Why the client needed our help
We were instructed by an individual, a former director of a company which had entered liquidation, who was facing disqualification proceedings brought by the Insolvency Service. Alongside his co-director, he was accused of breaching the terms of the Bounce Back Loan (BBL) scheme by causing the company to overstate its turnover in the loan application, resulting in the company receiving a higher loan than it was entitled to. The client was facing the prospect of an eight-year disqualification and a compensation order — a serious situation with significant personal and professional consequences.
How we helped
We were engaged to assess the merits of the proposed proceedings and advise on strategy. Following a thorough review of the available evidence and the Insolvency Service’s allegations, we identified key weaknesses in the case against both directors and advised that there was a reasonable prospect of persuading the Insolvency Service to drop the matter entirely. We prepared a comprehensive and carefully reasoned letter of representations on behalf of both directors, addressing the issues raised and setting out clear grounds as to why disqualification was neither appropriate nor in the public interest.
The outcome
As a result of our representations, the Insolvency Service discontinued its investigation and dropped the disqualification proceedings against both directors. No further action was taken, and the matter was resolved in full within two months of our instruction — a highly successful outcome for both clients, sparing them the reputational, financial, and professional consequences of prolonged litigation and potential disqualification.
