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 email@example.com.