Bans for disqualified director and stooge boss

A previously disqualified director has been banned for a second time after illegally running a Yeovil restaurant using former colleague as a stooge boss, with both of them remiss in paying tax and filing tax returns during the period it was in operation

Jane Goodfellow has received a second ban lasting 12 years and at the same time Clare Watts has been banned for five years for allowing Goodfellow to run the café and acting as a stooge director.

The company at the centre of the Insolvency Service investigation was The Yeovil Wine Vaults Ltd, which traded as a licensed restaurant in Yeovil known as the Wine Vaults.

The company was incorporated in October 2013 with Watts appointed the sole director and entered into liquidation in March 2017 after it could not pay its debts.

Liquidators appointed to wind up Yeovil Wine Vaults reported to the Insolvency Service concerns about the company and following further enquiries, investigators were able to establish that although Watts was the registered director, Goodfellow was the one in charge.

Goodfellow, also known by various other names including James, Murphy and Goodchild, was the person dealing with regulators, the local authority, employees and suppliers.

However, she should not have been running the restaurant as she was already subject to an 11-year disqualification order handed down by the courts in March 2006. This was in connection with her conduct as a director of Peaceflight Limited, a printing company.

Both Watts and Goodfellow worked together at Peaceflight Ltd and by allowing Goodfellow to run the restaurant, Watts acted as a stooge director, complicit in her former colleague’s breach of a disqualification order.

Further investigations also established that both Goodfellow and Watts failed to ensure Yeovil Wine Vaults filed annual returns, while also being remiss in paying tax or filing tax returns throughout the company’s entire trading period.

Dave Elliott, chief investigator for the Insolvency Service, said: ‘When Jane Goodfellow appeared in court more than 10 years ago, she would have been made fully aware by the judge that she was explicitly banned from acting in the management of a company.

‘But Jane Goodfellow thought she could get round her disqualification when she got her former colleague to act as a stooge director, leaving her to run the restaurant as she pleased.

‘However, as the restaurant collapsed their misdemeanours came to light, resulting in significant bans for the both of them.

‘This result should make it very clear to disqualified directors who ignore their bans and continue to act as directors, as well as those who assist them, that they will be vigorously pursued by the Insolvency Service.’

Report by Pat Sweet

Pat Sweet |Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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