Is this fraud?

[Justice]

Hello and thanks in advance for any advice.

I am legal Deputy (personal finance & affairs) for a relative that lost mental capacity. It would seem another relative has taken the opportunity to assign them as a joint Company Director for their new private Ltd business (but with none of the share allocation).

I believe they’ve used him for his equity in order to apply for business loans, applied for new identity documents for him etc.

While I’m waiting for action fraud to respond, just wondered if anyone could shed light on how illegal this is and what penalties someone who does something like this should expect? TIA

 

[Mark T Jones]

The starting point is to ask them what they are doing. Whilst it's hard to see a legitimate reason, on the thin information given we just guessing.

Making someone a director without their (competent) consent is unlikely to raise any interest from the authorities. Actions beyond that might, particularly if they involve forging documents or signatures. Proof is important!

 

[Daybooks]

Yes it probably is fraudulent if the appointment was knowingly registered without the consent of the individual.

Unfortunately you may wait a long time for a response from Action Fraud. You can try contacting Companies House; although they have new powers they possibly have no reason to accept your version over that actually filed.

Possibly start with asking the other relative for evidence of “consent to act” being given and the board minute approving the appointment. Request that the appointment is terminated. If you feel strongly enough then s1096 of the Companies Act might be your redress:

Companies Act 2006

An Act to reform company law and restate the greater part of the enactments relating to companies; to make other provision relating to companies and other forms of business organisation; to make provision about directors' disqualification, business names, auditors and actuaries; to amend Part 9...

www.legislation.gov.uk

 

[Justice]

Yes it probably is fraudulent if the appointment was knowingly registered without the consent of the individual.

Unfortunately you may wait a long time for a response from Action Fraud. You can try contacting Companies House; although they have new powers they possibly have no reason to accept your version over that actually filed.

Possibly start with asking the other relative for evidence of “consent to act” being given and the board minute approving the appointment. Request that the appointment is terminated. If you feel strongly enough then s1096 of the Companies Act might be your redress:

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Appreciate this thank you. The per...vered this all by accident on Friday evening…

 

[Justice]

The starting point is to ask them what they are doing. Whilst it's hard to see a legitimate reason, on the thin information given we just guessing.

Making someone a director without their (competent) consent is unlikely to raise any interest from the authorities. Actions beyond that might, particularly if they involve forging documents or signatures. Proof is important!

It’s a ridiculously complex situation that’s been going on since 2021. Long story short, they know his entire wealth is going to be spent on his care and want to make sure that they get a payday.

they’re already known to the police for harassment and threats to my sibling and I, attempting to move into his home and taking his physical assets, they even attempted to marry him to someone and the local authority had to intervene!

when someone loses capacity they’re legally not able to consent to legal docs… which was why I assumed (hoped) they’d actually face some charges…

 

[Gyumri]

In this situation you may find it useful to first speak to the Safeguarding Team at your local council so that they can understand your concerns.

You may also wish to press the nuclear option by applying to the High Court to undertake a Harbin v Masterman inquiry with a view to the court appointing the Official Solicitor to represent your sibling. The case will be decided within the Court of Protection over which certain High Court Judges are given jurisdiction.

A non- molestation order in the Family court can also be made in notice to protect your sibling from your other siblings.

So I would contact your relatives to say that the game is up and unless they start acting properly you will first apply for a non-molestation order against them; and if they don't immediately remove him as a director then you apply against them in the High Court.

You need to also be sure that his Will has been made already while he was compos mentos to reflect his wishes.