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Julian East, director of two connected companies Orange Angel Ltd and Orange People Solution Group, has been disqualified from acting as a director for six years for filing inaccurate financial accounts. The disqualification follows an investigation by The Insolvency Service.

Mr East, 43, of Charminster, Bournemouth has given an undertaking to the Secretary of State for Business, Innovation and Skills that he will not act as a director of a limited company from 27 February 2013 to 2019.

Both companies were recruitment agencies based in the City of London but Orange Angel Ltd (OAL) also traded as a property development business.

Mr East allowed accounts for Orange Angel Ltd (OAL) to be filed at Companies House that exaggerated the financial health of the company. The errors included:

The investigation into Mr East’s conduct as director of his other company Orange People Solution Group (OPSG) found that he put himself ahead of the company’s other creditors, in breach of his duty as a director.

On 7 April 2010, Mr East authorised a transfer of £62,793 from the company’s bank account to his personal bank account in settlement of his director’s loan instead of paying off more than £370,000 in unpaid taxes.

When OPSG entered administration on 9 August 2010, there was a total of £951,068 in claims from unsecured creditors on its books.

Mark Bruce, a Chief Examiner at The Insolvency Service said:

“Directors of all companies, especially of those experiencing financial difficulties, have a duty to act in the best interests of creditors. Arranging repayment of their own personal loans ahead of others is a clear disregard of this duty; as is filing inaccurate information about their company’s financial position, since creditors trust these reports.

“Creditor confidence in the viability of a company is vital for the smooth flow of business transactions that support economic growth. Directors who disregard their obligations to their creditors are toxic to the business environment and the Insolvency Service will use its powers to remove them from it.”

Notes to Editors

1. Orange Angel Limited, formally known as Angel Partners (Property) Limited and Angel Limited, was incorporated on 20 July 2005 and went into administration on 9 August 2010.

2. Orange People Solutions Group Limited, formally known as Nail Bite Ltd was incorporated on 31 March 2008 and went into administration on 30 July 2010.

3. In respect of OAL, the administration was concluded, the administrator vacated office and the company was placed into liquidation on 4 July 2011. In respect of OPSG, the administration was concluded, the administrator vacated office and the company was placed into liquidation on 7 July 2011.

4. Julian East gave an undertaking to the Secretary of State not be a director for six years. The disqualification commences on 27 February 2013.

5. Both companies had their registered offices and main trading premises was situated at 41-44 Great Queen Street, London, WC2B 5AD (“the Trading Premises”). Orange People Solutions Group traded from a further two branches located at 53 Mountain Street, The Abbey Business Centre, Manchester, M2 2AN (“The Manchester Premises”) and 33-49 Victoria Street, Bristol, BS1 6AS (“The Bristol Premises”).

6. Disqualification undertakings were introduced in April 2001, they are the administrative equivalent of a disqualification order but do not involve court proceedings. Without specific permission of a court, a person with a company directors disqualification, including undertakings, cannot act as a director of a company; take part, directly or indirectly, in the promotion, formation or management of a company; be a liquidator or administrator of a company; or be a receiver or manager of a company’s property.

7. 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

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