Why the Client Needed our Help
The Client contacted us having received a notice pursuant to section 16 of the Company Directors Disqualification Act 1986.
The Secretary of State, through the Insolvency Service, was seeking a disqualification of 6 years (5 years if by undertaking) on the basis that our Client had mis-allocated the funds received from their Bounce Back Loan.
How we Helped
We were instructed by our Client and immediately requested further time to consider the allegations and take our Client’s instructions. This was granted and we began preparing a substantive response to the claims from the Insolvency Service that centred around the legitimate use of funds obtained pursuant to the Bounce Back Loan scheme.
We provided these representations to the Insolvency Service, together with a detailed rehearsal of the timeline, background, and context that assisted in supporting our Client’s position.
The Outcome
The Insolvency Service replied to us a month or so later and completely dropped the investigation. For our Client this meant they were able to continue being a director of a limited company and continue their business without the threat of disqualification or compensation being sought against them.
