Failing to Pay Fines Can Mean More Than Financial Penalties

28th September 2018 by

Business owners and directors who fail to pay fines can lose in more ways than just financially. When a Derbyshire company fell foul of the Health and Safety Executive following a near-fatal accident to one of its employees, the fine that resulted after the investigation amounted to more than a quarter of a million pounds.

The company went into liquidation because it could not afford to pay the fine. However, the Insolvency Service then found that the director of the company had formed a new company which was undertaking similar work.

The result was the director being disqualified from being directly or indirectly involved in the formation or management of a company for six years.

The Insolvency Service has teeth and is not afraid to use them. Merely creating a ‘phoenix’ company in similar circumstances is fraught with danger. Always seek advice. For further information on this topic please contact Adrian Taylor on 020 7822 4000 or email adrian.taylor@healys.com.