Director Disqualification & Inadequate Books & Records

Discussion in 'Insolvency' started by UK Contractor Accountant, Mar 6, 2018.

  1. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

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    Does a signed Director Disqualification Undertaking stop a Criminal Investigation by the Insolvency Services for failure to maintain or to preserve adequate books and records of the company?
     
    Posted: Mar 6, 2018 By: UK Contractor Accountant Member since: Sep 18, 2013
    #1
  2. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

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    Not that I am aware of.
     
    Posted: Mar 6, 2018 By: Lisa Thomas Member since: Apr 20, 2015
    #2
  3. Newchodge

    Newchodge UKBF Big Shot Free Member

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    Why do you think it should, or might?
     
    Posted: Mar 6, 2018 By: Newchodge Member since: Nov 8, 2012
    #3
  4. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

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    Just going on past dealings with Liquidators that they did not normally pursue a Criminal Investigation once a DDU was signed - maybe due to lack of resources etc

    but I understand that a new Unit has recently been set up at the Insolvency Service - Criminal Enforcement Team (CET)?
     
    Posted: Mar 6, 2018 By: UK Contractor Accountant Member since: Sep 18, 2013
    #4
  5. The Byre

    The Byre UKBF Ace Free Member

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    Not automatically, but it lessens the risk of such criminal investigations and subsequent proceedings - dependent of course on the severity of the acts involved!

    If an undertaking is given after the issuance of proceedings, the person usually becomes liable for the state's legal costs up to the time it is accepted.

    I believe the new team is there to stem the flood (IMO) of fraudulent bankruptcies that are plaguing our business environment. Run up a huge pile of debts, extract all the monies and crash the company, move on!

    https://www.gov.uk/government/groups/insolvency-service-criminal-enforcement-team
     
    Posted: Mar 6, 2018 By: The Byre Member since: Aug 13, 2013
    #5
  6. Gavin Bates

    Gavin Bates UKBF Regular Free Member

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    Hi

    I agree with Lisa, in my experience, a directors disqualification undertaking would not necessarily stop a criminal investigation.

    Gavin
     
    Posted: Mar 6, 2018 By: Gavin Bates Member since: May 9, 2016
    #6