Steve Thomas, Insolvency Partner and Mediator at Excello Law, has successfully acted for a company director facing potential director disqualification proceedings following the liquidation of their business.
The director’s company entered liquidation a year after the onset of the COVID-19 pandemic. Like many businesses during this period, it had obtained support through the government’s Bounce Back Loan Scheme (BBLS) and the Coronavirus Business Interruption Loan Scheme (CBILS), both designed to provide financial lifelines to smaller businesses.
In the aftermath of the insolvency, the Secretary of State opened an investigation into the director’s conduct, with a view to pursuing disqualification proceedings. However, after reviewing detailed legal submissions and representations prepared by Steve Thomas, the Secretary of State confirmed that it would not proceed with action.
A written notice stated:
“On the basis of information presently available, the Secretary of State does not propose to take disqualification proceedings against [the director].”
The decision brought significant relief for the director, who had faced the prospect of long-term restrictions on their ability to act in business.
Commenting on the outcome, Steve Thomas said:
“This was a particularly important case, as many directors are still feeling the effects of decisions made during the pandemic. It’s vital that they are not unfairly penalised for circumstances beyond their control. I am pleased to have been able to achieve a fair and positive result for my client.”
The case underscores the challenges many directors have faced in the wake of the pandemic, particularly where government-backed loans were involved, and highlights the importance of expert representation in insolvency-related investigations.
If you are a director in a similar position then please contact Steve Thomas at Excello law.
