Day: November 17, 2017

On 11 September 2017, the Secretary of State for Business, Energy, & Industrial Strategy, accepted a disqualification undertaking from Ms Townsend from 2 October 2017 for 7 years.

The company went into liquidation on 6 April 2016 owing £110,236 to creditors, of which £58,522 related to Value Added Tax (VAT).

The unfit conduct that led to Ms Townsend giving the undertaking was that she submitted incorrect VAT returns to HM Revenue & Customs (HMRC) which resulted in the company receiving £21,588 in VAT reclaims whereas at least £30,542 should have been paid to HMRC equivalent to an under declared amount of at least £52,130.

Martin Gitner, Deputy Head of Investigations with the Insolvency Service said:

Under-declaration of the VAT due by a company deprives the exchequer of the monies needed to provide public services. In co-operation with HMRC, the Insolvency Service will not hesitate to investigate such misconduct with disqualification as a director the likely outcome.

Notes to editors

Ms Christie Elizabeth Townsend, date of birth October 1947 and she resides in Wigston.

Greendeal Helpline Limited was incorporated on 7 February 2012. The company traded as a lead generator.

Ms Townsend was a director from 7 February 2012 to liquidation.

The Company went into Creditors Voluntary Liquidation on 6 April 2016 with an estimated deficiency of £106,721.

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

• act as a director of a company
• take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
• be a receiver of a company’s property

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings.

Persons subject to a disqualification order are bound by a range of other restrictions

The Insolvency Service, an executive agency sponsored by the Department for Business, Energy and Industrial Strategy (BEIS), administers the insolvency regime, and aims to deliver and promote a range of investigation and enforcement activities both civil and criminal in nature, to support fair and open markets. We do this by effectively enforcing the statutory company and insolvency regimes, maintaining public confidence in those regimes and reducing the harm caused to victims of fraudulent activity and to the business community, including dealing with the disqualification of directors in corporate failures.

BEIS’ mission is to build a dynamic and competitive UK economy that works for all, in particular by creating the conditions for business success and promoting an open global economy. The Criminal Investigations and Prosecutions team contributes to this aim by taking action to deter fraud and to regulate the market. They investigate and prosecute a range of offences, primarily relating to personal or company insolvencies.

The agency also authorises and regulates the insolvency profession, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

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The five companies – KSA Associates (UK) Limited (KSA), Ezybackoffice Limited (EZY), Temp Payroll Services Limited (TPS), A & T Active Recruitment (UK) Limited (A&T) and B Diminish Limited (BDL) were wound-up by the High Court on 17 October 2017, following an investigation by the Insolvency Service.

The Court heard that, under a contrived structure designed to take advantage of tax benefits available to professional service companies (PSCs), A&T acted as recruitment agents for temporary workers who were then given the option to be directly employed by them or, alternatively, to provide their services through their own PSC.

KSA, provided, amongst other things, accounting and bookkeeping services to the PSCs and was appointed to act as their agent whilst TPS and Ezy provided payroll services to the PSCs. BDL was one of 211 PSCs set up under the model.

The Court found that there was a lack of transparency in the scheme being operated by the companies. This included the temporary workers, for many of whom English was not their first language, being appointed as directors and/or employees of the PSCs having no meaningful knowledge of the companies and their directorships.

Enquiries showed that some of the workers were unaware of their appointment as directors. One named director was said to be autistic and had never heard of KSA. Furthermore, the court was told, the main beneficiaries from the scheme were KSA, EZY and TPS rather than the PSCs or the temporary workers.

Chief Investigator at the Insolvency Service, Alex Deane, said:

This was a complex enquiry into a sophisticated scheme involving systematic abuse of the corporate regime and where the named directors of the PSC companies often had no idea of the scheme they were involved in.

Those operating such schemes should be aware that the Insolvency Service will intervene when appropriate to stop them.

Notes to Editors

The petitions to Wind-up the companies were presented to the High Court on 30 June 2016, under the provisions of Section 124A of the Insolvency Act 1986 following confidential enquiries by Company Investigation under Section 447 Companies Act 1985, as amended. The Winding-up order was made on 17 October 2017.
The order was pronounced by Deputy District Judge Watkin, with Lucy Wilson-Barnes of Zenith Chambers appearing for the Insolvency Service. The proceedings were not defended.

KSA was incorporated on 19 January 2012, registration number 07917066. Its registered office is at Vincent Court, Hubert Street, Aston Lock, Birmingham, B6 4BA. The company’s directors, until 17 July 2017, were Kevin Patrick Sharkey and Nathan Kingsley Golby.

EZY was incorporated on 7 May 2013, registration number 08516979. Its registered office is at Vincent Court, Hubert Street, Aston Lock, Birmingham, B6 4BA. The company’s directors, until 17 July 2017, were Kevin Patrick Sharkey and Nathan Kingsley Golby.

A&T was incorporated on 27 January 2015, registration number 09408613. Its registered office is at Vincent Court, Hubert Street, Aston Lock, Birmingham, B6 4BA. The company’s directors, until 17 July 2017, were Kevin Patrick Sharkey and Nathan Kingsley Golby.

TPS was incorporated on 3 November 2013, registration number 09292550. Its registered office is at Vincent Court, Hubert Street, Aston Lock, Birmingham, B6 4BA. The company’s directors, until 17 July 2017, were Kevin Patrick Sharkey and Nathan Kingsley Golby.

BDL was incorporated on 6 November 2014, registration number 09297833. Its registered office is at Vincent Court, Hubert Street, Aston Lock, Birmingham, B6 4BA. The company’s directors were Theodore Ufuah and Adrian Kasprzyk (until 5 November 2015).

Company Investigations, part of the Insolvency Service, uses powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK on behalf of the Secretary of State for Business, Energy & Industrial Strategy (BEIS).

Further information about live company investigations is available here

The Insolvency Service, an executive agency sponsored by the Department for Business, Energy and Industrial Strategy (BEIS), administers the insolvency regime, and aims to deliver and promote a range of investigation and enforcement activities both civil and criminal in nature, to support fair and open markets. We do this by effectively enforcing the statutory company and insolvency regimes, maintaining public confidence in those regimes and reducing the harm caused to victims of fraudulent activity and to the business community, including dealing with the disqualification of directors in corporate failures.

BEIS’ mission is to build a dynamic and competitive UK economy that works for all, in particular by creating the conditions for business success and promoting an open global economy. The Criminal Investigations and Prosecutions team contributes to this aim by taking action to deter fraud and to regulate the market. They investigate and prosecute a range of offences, primarily relating to personal or company insolvencies.

The agency also authorises and regulates the insolvency profession, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

All public enquiries concerning the affairs of the company should be made to: The Official Receiver, Public Interest Unit, 2nd Floor, 3 Piccadilly Place, London Road, Manchester, M1 3BN. Tel: 0161 234 8531 Email: piu.north@insolvency.gsi.gov.uk

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Arts Minister John Glen has placed a temporary export bar on Mae West Lips Sofa, by Salvador Dalí and Edward James, to provide an opportunity to keep it in the country.

The sofa is at risk of being exported from the UK unless a buyer can be found to match the asking price of £480,281.56 plus VAT.

One of the most instantly recognisable pieces of furniture of the 20th century, the sofa was also a collaboration between Dalí, one of the century’s most important and influential artists and James, a key figure in the international recognition and promotion of Surrealism.

The decorative elements of the sofa correspond to the decoration of the interior of Monkton House, West Sussex, which was originally designed by Sir Edwin Lutyens in 1902 for Edward James’s parents. As part of his renovation of the interior of the House in the mid-1930s, James was assisted by architects Christopher ‘Kit’ Nicholson and Hugh Casson, as well as decorator Norris Wakefield.

Together they created a wondrous assortment of Victorian, Regency and Surrealist design, with intentionally shocking Surrealist objects filling the spaces and surfaces of the house.

Five Mae West Lips Sofas were made in total; all in 1938. This particular version of the sofa was altered by James from the other versions to make it an integral part of the decoration of Monkton House and to fit with his vision for a Surrealist interior.

Its dimensions, textiles and colour differ from other versions, and it was also elongated to give the lips a more satisfactory appearance.

Arts Minister John Glen said:

This iconic piece is considered to be the single most important example of Surrealist furniture ever made in Britain. I very much hope that a buyer comes forward to keep this unique item in the UK.

The decision to defer the export licence follows a recommendation by the Reviewing Committee on the Export of Works of Art and Objects of Cultural Interest (RCEWA), administered by the Arts Council.

RCEWA member Richard Calvocoressi said:

Salvador Dalí and Edward James’s sofa in the shape of Mae West’s lips shares with Meret Oppenheim’s fur-covered cup, saucer and spoon of the same date (Museum of Modern Art, New York) the distinction of being the most famous object in the history of Surrealism.

But it is more than a witty surrealist sculpture or a striking example of fantasy furniture. It is a masterpiece of Pop art 25 years before Pop was invented.

The RCEWA noted the power of the image of the sofa in the 20th century. It made its recommendation on the grounds of the sofa’s close connection with our history and national life, its outstanding aesthetic importance and its significance for the study of furniture history, as well as the history of design and Surrealist art.

The decision on the export licence application for the sofa will be deferred until 16 February. This may be extended until 16 May if a serious intention to raise funds to purchase it is made at the recommended price of £480,281.56 (plus VAT of £16,600).

Organisations or individuals interested in purchasing the sofa should contact the RCEWA on 0845 300 6200.

An image of the sofa can be downloaded via our flickr site.

ENDS

Notes to editors

1. Details of the sofa are as follows:
   Composed of a red felted wool top cover with green decorative appliques in the form of larvae and black wool fringing over traditional horse-hair upholstery and webbing on a wooden carcass. Measuring 79cm (h) by 202cm (w) by 92cm (d), the sofa was probably made by Green & Abbot, London, in 1938.
2. The Reviewing Committee on the Export of Works of Art and Objects of Cultural Interest is an independent body, serviced by The Arts Council, which advises the Secretary of State for Digital, Culture, Media and Sport on whether a cultural object, intended for export, is of national importance under specified criteria.
3. The Arts Council champions, develops and invests in artistic and cultural experiences that enrich people’s lives. It supports a range of activities across the arts, museums and libraries – from theatre to digital art, reading to dance, music to literature, and crafts to collections. www.artscouncil.org.uk.

Following an Insolvency Service investigation, the Secretary of State for Business, Energy and Industrial Strategy accepted a disqualification undertaking from Alan Verinder effective from 31 October 2017.

Disqualification undertakings were also accepted from Ross Verinder, Graham Rummens and Carol Verinder who were also directors of the company, for allowing Alan Verinder to increase the debt he owed to the company when the company was unable to pay its debts owed to HM Revenue and Customs (HMRC).

Ross Verinder, a licensed financial advisor, and Graham Rummens, a chartered certified accountant, have been disqualified for a period of three years each which will take effect on 24 November 2017. Carol Verinder has been disqualified for a period of two years with effect from 31 October 2017.

V&AES Limited operated as a payroll company for subcontractors working for third party companies. As such it was paid gross sums in bulk by third party companies and would be responsible for deducting PAYE from their employees and paying it to HMRC on their behalf. It had minimal tax liabilities in respect of its own employees but significant amounts due in respect of the sub contractors.

The Insolvency Service’s investigation found that from 1 September 2012, when V&AES Limited was unable to pay its debts to HMRC as and when due until 13 February 2014 when the company went into liquidation, Alan Verinder caused the company to make payments to directors and connected businesses of £406,240 and therefore breached his duty to act in the best interests of the company by increasing his borrowings from the company from £22,125 to £163,091.

During this time debts owed to HMRC increased from £53,974 to £395,274.

As a result, the payments to the directors and connected businesses were at the risk of HMRC.

In June 2016 Alan Verinder paid £210,000 to the liquidator of V&AES in full and final settlement of his director’s loan account and the payments that had been made to connected businesses.

Robert Clarke, Head of Insolvent Investigations North at the Insolvency Service, said:

Directors who put their own personal financial interests above those of creditors damage confidence in doing business and are corrosive to the health of the local economy.

These bans should serve as a warning to other directors tempted to help themselves first; you have a duty to your creditors and if you neglect this duty you could be investigated by the Insolvency Service and lose the privilege of limited liability trading.

Notes to editors

Alan Lovell Verinder’s date of birth is 8 September 1948 and he resides in Merseyside.

Carol Ann Verinder’s date of birth is 19 November 1949 and she resides in Merseyside.

Ross Kenneth Verinder’s date of birth is 11 March 1978 and he resides in Merseyside.

Graham John Rummens’ date of birth is 4 February 1978 and he resides in Merseyside.

V&AES Limited (CRO No. 07513460), formerly known as Verinder & Associates Employee Services Limited until 29 November 2013, was incorporated on 2 February 2011 and latterly traded from 1-3 Crosby Road South, Waterloo, Liverpool, Merseyside, L22 1RG.

Alan Verinder was a director from 2 February 2011 until 13 February 2014.

Carol Verinder was a director from 2 February 2011 until 13 February 2014.

Ross Verinder was a director from 2 February 2011 until 29 November 2013.

Graham Rummens was a director from 2 February 2011 until 29 November 2013.

The company went into voluntary liquidation on 13 February 2014 with an estimated deficiency of £201,980.

On 10 October 2017 the Secretary of State accepted a disqualification undertaking from Alan Verinder, effective from 31 October 2017, for a period of four and a half years. The matters of unfitness, which Alan Verinder did not dispute in the disqualification undertaking were that from at the latest 01 September 2012 when V&AES was unable to pay its liabilities to HM Revenue and Customs as and when due, Alan Verinder breached his fiduciary duty by allowing an overdrawn director’s loan account to increase from £22,125 to £163,091 while liabilities to HMRC increased from £53,974 to £395,274

On 10 October 2017 the Secretary of State accepted a disqualification undertaking from Carol Verinder, effective from 31 October 2017 for a period of 2 years. The matters of unfitness, which Carol Verinder did not dispute in the Disqualification Undertaking, were that from at the latest 01 September 2012 when V&AES was unable to pay its liabilities to HM Revenue and Customs as and when due, Carol Verinder breached her fiduciary duty by allowing an overdrawn director’s loan account to increase from £22,125 to £163,091 while liabilities to HMRC increased from £53,974 to £395,274.

On 3 November 2017 the Secretary of State accepted disqualification undertakings from Ross Verinder and Graham Rummens, effective from 24 November 2017 for a period of 3 years each. The matters of unfitness, which Ross Verinder and Graham Rummens did not dispute in the disqualification undertakings, were that they relied upon the Managing Director of V & AES who was principally involved in the day to day management, but accept that they failed to take sufficient steps, and as a result from at the latest 1 September 2012 when V & AES was unable to pay its liabilities to HMRC as and when due until 29 November 2013 when they resigned as directors, they breached their fiduciary duties by allowing an overdrawn Director’s Loan Account to increase from £22,125 to £204,424 while liabilities payable to HMRC increased from £53,974 to £247,932.

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

• act as a director of a company
• take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
• be a receiver of a company’s property

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Persons subject to a disqualification order are bound by a range of other restrictions

The Insolvency Service, an executive agency sponsored by the Department for Business, Energy and Industrial Strategy (BEIS), administers the insolvency regime, and aims to deliver and promote a range of investigation and enforcement activities both civil and criminal in nature, to support fair and open markets. We do this by effectively enforcing the statutory company and insolvency regimes, maintaining public confidence in those regimes and reducing the harm caused to victims of fraudulent activity and to the business community, including dealing with the disqualification of directors in corporate failures.

BEIS’ mission is to build a dynamic and competitive UK economy that works for all, in particular by creating the conditions for business success and promoting an open global economy. The Criminal Investigations and Prosecutions team contributes to this aim by taking action to deter fraud and to regulate the market. They investigate and prosecute a range of offences, primarily relating to personal or company insolvencies.

The agency also authorises and regulates the insolvency profession, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

Contact Press Office

You can also follow the Insolvency Service on:

• Twitter
• LinkedIn
• YouTube

• Healthcare and life sciences company Ipsen invests £22million at its North Wales site
• Ipsen pledges its commitment to Wales post EU Exit

Secretary of State for Wales Alun Cairns will visit North Wales today (17 November 2017) to welcome global healthcare company Ipsen’s £22million investment at its Wrexham site.

The announcement cements the organisation’s commitment to the UK healthcare arena and further underlines Wales’ growing reputation as a centre of excellence for life sciences.

Ipsen is the third biggest employer in the area with approximately 400 employees. Today’s announcement will see its Wrexham footprint expand to increase research and manufacturing capacity with new packing line capability and a new office environment.

Life sciences is one of Wales’ fastest growing sectors. It has a turnover of around £2 billion and employs around 11,000 people in over 350 companies.

The UK’s strengths in science, research and innovation are also a major focus of the government’s industrial strategy.

The Secretary of State will also tour global medical products and technologies company ConvaTec in Deeside.

Welcoming the announcement Secretary of State for Wales Alun Cairns said:

Ipsen is one of North Wales’ great success stories. Their continued expansion is a clear demonstration of the significant contribution life sciences and innovation in these specialist areas make to the region and to the Welsh economy.

The continued growth of Ipsen’s presence in Wrexham demonstrates its commitment to North Wales and to its skilled workforce. These are exciting times for the company and for the sector in Wales as a whole as we look to establish ourselves as a world class hub of excellence in life sciences research and development.

Ipsen sell products in 115 countries worldwide, has operated in Wrexham since 1995, with more than 25 years of experience, manufacturing and development of innovative specialty care products. The site at Wrexham produces one of Ipsen’s key strategic products Dysport®, which is approved in 80 countries and in several therapeutic indications such as cerebral palsy, spasticity and cervical dystonia.

Aidan Murphy, Senior Vice President, Biotech Development and Manufacturing at Ipsne said:

We are delighted by today’s announcement as we take important strides in the accelerated expansion programme underway at Wrexham which will see production grow significantly to reflect demand and company ambition.

The manufacture of Dysport® remains a highly complex process, difficult to replicate and utilises technology that isolates the product, not only from the environment, but the people working in the area. We are fortunate to work with a group of highly-skilled individuals across all parts of the organisation at Wrexham and know that this expansion reinforces the site’s position as a state-of-the-art medicine manufacturing facility located here in the UK.

Ewan McDowall, General Manager Ipsen UK & Ireland, commented on the continued investment in the UK saying,

The UK remains a pioneer of healthcare, life sciences and technology, and Ipsen will continue to invest and support UK growth. Brexit has brought a period of uncertainty, however Ipsen remain confident that the UK will remain an important location for us across research, development, manufacturing and patients’ access to medicines.

Alun Cairns added:

Ipsen is an important inward investor in Wales. As we prepare to leave the EU, this government is committed through our Industrial Strategy to ensuring the UK remains one of the best places in the world to do business.