INSOLVENCY SERVICE
News Release (Ins/Coms/9) issued by The Government News Network on
14 June 2007
Philip Lionel
Chandler has been disqualified for 9 years and Colin Campbell
Rouse for 5 years following an investigation by Companies
Investigation Branch of the Insolvency Service.
Mr Chandler had controlled a succession of estate agency
companies which had all failed with total debts of £1.9 million,
of which £325,000 was due to landlords in respect of rent
collected but not paid over to them. The business of the failed
companies was taken over by Semprini Limited and then Python
Properties Limited. These companies were also controlled by
Chandler but without him being formally appointed as a director.
Colin Rouse took on the role of director but had little
involvement in the financial affairs of the companies.
The Companies Investigation Branch enquiries revealed that:
* Mr Chandler controlled both companies, largely from the shadows
and with Rouse as a stooge director.
* Semprini took lettings and management fees up front but totally
failed to provide landlords with the service that they had already
paid for.
* Rental monies collected on behalf of landlords were retained
and used to finance Semprini's business. The monies owed to
landlords rose from £35,700 during the early period of trading to
£108,000 latterly.
* Landlords suffered financial hardship and had to manage their
own properties and collect their own rents, despite already having
paid Semprini to do this for them.
* Landlords who obtained judgment against Semprini were told that
it suffered from cashflow problems and they would have to be
repaid in monthly instalments of £500. However, Semprini was able
to pay Mr Chandler £140,000.
* Semprini failed to pay the Crown £67,000 in relation to PAYE,
National Insurance Contributions and Value Added Tax throughout
its period of trading. £37,000 of this amount was due to the
Inland Revenue, which sent Semprini a series of underpayment
notices before issuing a petition which resulted in Semprini being
compulsorily wound up by the Court.
* Python failed to pay the Crown £68,000 relating to PAYE,
National Insurance Contributions and Value Added Tax throughout
its period of trading.
* Semprini and Python failed to maintain proper books and
records. Semprini did not maintain a record that explained
payments made to Mr Chandler totalling £ 140,000. No record was
made in Semprini's accounting records in respect of bankings
of £88,000 and payments of £83,000. There were unexplained
transactions through Semprini's accounts including payments
of £120,000 and receipts of £382,000. Python did not maintain a
cashbook and there were unexplained transactions through its
accounts including payments of £226,000 and receipts of £189,000.
* Mr Chandler failed to co-operate with the Companies
Investigation Branch Investigation. He delayed meetings and missed
numerous deadlines for the provision of documents requested. Such
documents as were produced by Mr Chandler were either extremely
late, irrelevant or did not match the documents requested.
NOTES TO EDITORS
1. Philip Lionel Chandler of Buckhurst Hill, Essex gave a
disqualification undertaking for a period of 9 years which
commences on 16 June 2007.
2. Colin Campbell Rouse of Brentwood, Essex was disqualified for
a period of 5 years by Order of Court dated 5 June 2006.
3. Companies Investigation Branch, part of the Insolvency
Service, carries out confidential enquiries under Section 447 of
the Companies Act 1985 and, where necessary, takes further action
in the name of the Secretary of State. This can include winding
up proceedings in the public interest or disqualification
proceedings against directors under Section 8 of the Company
Directors Disqualification Act 1986.
4. Section 8 of the Company Directors Disqualification Act 1986
allows the Court to make a disqualification order of up to 15
years for unfit conduct. On 2 April 2001, amendments were
introduced by the Insolvency Act 2000 allowing directors, with the
agreement of the Secretary of State, to avoid the need for a Court
hearing by offering an acceptable disqualification undertaking.
This has the same legal effect as a disqualification order made by
the Court and usually includes a schedule identifying the
director's unfit conduct. The consequences of breaching a
disqualification undertaking are the same as those for breaching a
disqualification order; a fine or imprisonment for up to two years.
5. 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.
6. Companies House maintains a public register of disqualified
directors that can be viewed at http://www.companieshouse.gov.uk.
7. Members of the public who think that they know of any person
who is acting in breach of a Disqualification Order or Undertaking
should report that person's details to The Insolvency Service
Enforcement Hotline on 0845 601 3546 (24 hour message service).
8. For further information about Companies Investigation Branch,
the Insolvency Service and disqualifications see: http://www.insolvency.gov.uk