282230 | Director Disqualification - Types of Misconduct

Typical misconduct might include but is not limited to:-

Failure to comply with tax and company obligations e.g.

• Tax

• Deliberate Submission of false information to HMRC

• Failure to register, failure to file Returns or failure to file accurate Returns

• Failure to operate PAYE

• Deliberate non-payment of HMRC liabilities

• Payments on assessments for prolonged period which are substantially less than true debt

• Fraud, such as under declaration/ suppression of taxes by failing to record sales

• Deliberate tax avoidance/ breach of DOTAS legislation

• Companies Act

• Failure to file documents at Companies House

• Failure to submit statutory returns over a 2 year period

Not acting in best interests of the company e.g.

• Putting personal gain before the profits of the company (conflict of interest)

• Illegal dividends

• Personal enrichment/ excessive benefits

• Transactions at an undervalue (e.g. company assets gifted to director)

• Dissipating assets/ removal of assets

• Assets disposed of when aware of insolvency

Trading with knowledge of insolvency and/ or phoenixism

Transactions to the detriment of creditors

• Preferential payment (favouring one creditor over another)

• Misfeasance - a misuse, neglect or abuse of duty of care to the company and its creditors by the director

• Treating one creditor unfairly

• Putting assets out of reach of creditors

• Contrived liquidation to avoid liabilities

Records

• Record disposal of dubious nature

• Fraudulent Accounts - deception/ suppression/ off record accounts

• Failure to maintain/ preserve/ produce accurate records so cannot evidence reason for transactions

• Poor record keeping - suppression of tax/ inability to assess

• Deliberate provision of false information

Actions

• Bad practices allowed to continue - weakness in systems and processes

• Sham or Nominee directors - legal director not controlling mind

• Repetition – continued failed companies/ serial phoenixism