Insolvency Service
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Four former directors of Luton Town Football Club handed disqualifications totalling 19 years
Four former directors of Luton Town Football Club Limited (“LTFC”) were disqualified from acting as directors or in any way managing or controlling limited companies for periods ranging from three to seven years on 5 September 2011, following a six-day trial at the High Court in London. The disqualifications follow an investigation and proceedings brought by The Insolvency Service.
William John Tomlins, the former Chairman of LTFC, was disqualified for six years; Derek Robert Peter, the former Chief Executive Officer and a Chartered Accountant was disqualified for seven years; Richard Sidney Bagehot and John Mitchell were each disqualified for three years.
The investigation by The Insolvency Service found that the directors of LTFC had breached Football Association (FA) and FIFA rules and caused LFTC to trade at the risk and detriment of HM Revenue and Customs (“HMRC”), being in arrears with PAYE and NIC within a few months of commencing to trade and recently not declaring or paying its VAT liability.
Between July 2004 and February 2007 LTFC acted in breach of FA and FIFA rules and regulations on payments to football agents. The FA enquiry found that the company had dealt with unlicensed football agents and made payments totalling £157,000 through its holding company Jayten Stadium Limited (‘JSL’) using funds provided by LTFC which should have been paid by LTFC itself and routed through the FA.
During the same period of July 2004 and February 2007 the directors individually either caused or allowed the company to trade at the risk of and ultimate detriment to HMRC which was owed £3,578,661. The Court heard there was a pattern of non-payment and chasing from HMRC
Robert Burns, Head of investigation and Enforcement Services said, “One of the main purposes of the Company Directors Disqualification Act is to ensure that proper standards of conduct of company directors is maintained and to raise those standards where appropriate. These disqualifications should serve as a reminder that The Insolvency Service will investigate unacceptable conduct by company directors regardless of the nature of the business involved.”
Ends
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Notes to Editors
1. LTFC started trading in mid 2004 after purchasing the business and assets of Luton Town Football and Athletic Company Limited from its Administrative Receivers.
LTFC won football League 1 in the 2004/2005 football season and were promoted to the Championship for the 2005/2006 football season, staying there until they were relegated to League 1 in May 2007.
2. In March/April 2007 the Football Association (“FA”) started an investigation which resulted in 15 charges against LFTC for breaches of the FA and FIFA Rules and Regulations concerning payments to football agents from July 2004 to February 2007 which resulted in a fine of £50,000 and a 10 point deduction for the 2008/2009 football season.
3. On 22 November 2007 LTFC went into administration owing its creditors approx £7million. In June 2008 the FA imposed a further fine and point deduction against LFTC and in July 2008 LTFC’s business and assets were bought from the Administrators by LTFC 2020 Limited, with LTFC going into liquidation in November 200?
4. In his judgement Mr Registrar Nicholls said that this was “..not regarded by this court as a ‘minor misdemeanour’” The allegation is a serious one demonstrating a disregard for rules and regulations with severe consequences for the club and its supporters…”
5. Company Investigations, part of the Insolvency Service, carries out confidential enquiries on behalf of the Secretary of State for Business, Innovation & Skills (“BIS”).
6. The Insolvency Service administers the insolvency regime investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. The Service also authorises and regulates the insolvency profession; deals with disqualification of directors in corporate failures; 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 is available from www.bis.gov.uk/insolvency
7. Media Enquiries should be directed to:
Ade Daramy, Press Officer on 020 7596 6187
Contacts:
Ade Daramy
Phone: 020 7596 6187
ade.daramy@insolvency.gsi.gov.uk
