Second ban for shadow director
13 Jun 2019
A banned Luton IT consultant, who caused his own company to fail to pay tax due, has been found to be acting as a shadow director of his elder sister’s company, and had his restrictions extended by 11 years
13 Jun 2019
Absolute Resource Management Ltd (ARM) was incorporated on 30 November 2007 and began trading in 2009 under the sole directorship of Carol Perry. The Bedford-based company provided IT consultancy services to businesses.
By August 2016, however, ARM was unable to pay its debts and appointed a liquidator to commence voluntary liquidation proceedings.
The liquidator’s report triggered an Insolvency Service investigation, which found that Carol Perry’s younger brother, Keith Perry had been acting as a shadow director of ARM since 2010, despite being disqualified from doing so.
Keith Perry’s original ban came into force in August 2010 for seven years following his conduct while director of Absolute Service Management (Beds) Ltd. He caused that company not to maintain adequate accounting records or pay appropriate taxes.
Under his disqualification restrictions, Keith Perry should have applied to the courts for leave to act as a director of ARM, but failed to do so.
Investigators also discovered that Keith Perry repeated his earlier misconduct, causing ARM not to pay its taxes in full between March 2013 and August 2016. The company eventually stopped trading owing the tax authority more than £220,000.
Keith Perry has now accepted an 11-year disqualification. Carol Perry previously signed a disqualification undertaking in July 2018 for four years after failing to ensure the company fulfilled its tax obligations.
Lawrence Zussman, deputy head of insolvent investigations for the Insolvency Service, said: ‘The liquidation of Absolute Resource Management shone a light on what had been going on in the shadows, revealing that Keith Perry had been flouting his ban.
‘This 11-year disqualification serves as a warning to other directors who think they can hoodwink the system that we will pursue enforcement action to stop unscrupulous behaviour.’