HEVER TIMESHARE AND HORSE RACING DIRECTORS DISQUALIFIED

28 May 2004 03:45 PM

Eight directors linked to a timeshare and a horse racing club have been disqualified from acting as company directors for a total of 34 years following a DTI investigation.

Hever Worldwide Properties plc raised over 7 million from the public sale of shares, which buyers believed entitled them to use holiday accommodation both in the UK and abroad. These were notably at Hever Golf and Country Club at Hever in Kent and Long Beach Club, Magosa, Northern Cyprus.

In reality there was no market in the shares, which had little or no value

Shares offered to the public in Hever Racing Club plc provided membership of Hever Racing Club 1, which was to lease racehorses from the company. The scheme was unsuccessful, the company having failed to raise the required minimum share capital of 125,000.

The companies, and a string of associated companies, were wound up in August 2000 following an investigation by the DTI's Companies Investigations Branch.

Investigations revealed a range of inappropriate business practice including failure to keep proper accounting records and trading in a manner contrary to the public interest.

The Secretary of State for Trade and Industry accepted undertakings not to be a director or concerned in the management of a company from:

- [removed by request - 22/08/2016]

- John Henry Popely, 60, of Tenterden, Kent, for eight years in relation to his conduct as a director of Hever Worldwide Properties plc, Hever Country Hotel Limited and Hever Racing Club plc;

[removed by request - 14/05/2014]

- Dawn Humphrey, 47, of Welling, Kent for two-and-a-half-years in relation to her conduct as a director of Hever Management Ltd;

- Jane Camille Hawley, 40, of Gazimagusa, Northern Cyprus, for two-and-a-half years in relation to her conduct as a director of Hever Management Limited;

- Thomas Joseph Naughton, 40, of Reigate, Surrey, for two years in relation to his conduct as a director of Hever Racing Club plc;

- Malcolm James Cunningham, 64, of Beverley, East Yorkshire, for two years in relation to his abrogation of duties as a director of Monaman Limited and to his conduct as a director of Hever Racing Club plc. Mr Cunningham was granted permission by the Court to be a director of two companies involved in the modular building industry; and

- John Francome MBE, 51, of Lambourne, Berkshire, for two years in relation to his conduct as a director of Hever Racing Club plc.

Notes to editors

1. Investigations were carried out under section 447 of the Companies Act 1985 which enables investigators to require a company to produce its records. If it is in the public interest the Secretary of State may use the information obtained to petition the Court to wind up a company or to disqualify the company directors.

2. The companies and clubs ordered into compulsory liquidation in August 2000 on the public interest petitions of the Secretary of State were:

(i) Hever Worldwide Properties plc (formerly Hever Worldwide Vacation plc and Hever Worldwide Property Club plc);
(ii) Hever Vacation Club;
(iii) Monaman Limited (formerly Hever Castle Golf and Country Club plc and Hever Golf and Country Club plc);
(iv) Casterbridge Properties plc (a company registered in St Vincent and the Grenadines);
(v) Hever Country Hotel Limited;
(vi) Hever Country Hotel Title Limited;
(vii) Fanlight Finance Limited (a company registered in St Vincent and the Grenadines);
(viii) Hever Management Limite;
(ix) Hever Racing Club plc;
(x) Hever Racing Club 1.

3. The misconduct alleged in Hever Worldwide Properties plc, Monaman Limited and Hever Country Hotel Limited included:

(a) causing or allowing the business affairs to be intermingled and confused with other entities involved in the development and marketing of land and timeshare accommodation at Hever Golf and Country Club;
(b) failure to keep proper accounting records;
(c) making and receiving substantial unexplained sums to and from connected entities; and
(d) trading in a manner contrary to the public interest.

in Hever Management Limited:

(a) mixing members' money with its own;
(b) failure to keep proper accounting records;
(c) making and receiving substantial unexplained sums to and from connected entities; and
(d) causing or allowing the company to enter into transactions relating to a boat which was ultimately sold to [removed by request - 22/08/2016] at a substantial loss.

and in Hever Racing plc:

(a) abrogating responsibilities as directors.
(b) causing or allowing the company to commence trading
notwithstanding that the required minimum level of share capital had not been received.
(c) failure to keep proper accounting records and,
(d) causing or allowing unexplained payments to connected entities.

4. Companies Investigations Branch (CIB) is part of the Fair Markets Group, Company Law and Governance Directorate of the Department of Trade and Industry. Further information on company investigations is available from:

http://www.dti.gov.uk/cld/comp inv.htm

5. The disqualification actions were commenced under section 8 of the Company Directors Disqualification Act 1986. The Court may disqualify directors from directorships and involvement in the management of companies for up to 15 years for unfit conduct.

6. To avoid the need for a Court hearing, directors who accept that their conduct is unfit can give an undertaking to the Secretary of State that they will not become involved as a director or in the management of a limited company for an agreed period. This has the same legal effect as a disqualification order made by the Court.

7. Contravention of a disqualification order or a breach of a disqualification undertaking is a criminal offence and may result in a fine or imprisonment for up to two years.

8. Members of the public who think that they know of any person who is acting in breach of a Disqualification Order or Undertaking can report that person's details to The Insolvency Service Disqualified Directors Hotline on 0845 601 3546 (24 hour message service). General enquiries to the Insolvency Service should be addressed to the General Enquiries Help Line on 020 7291 6895.

9. Companies House maintains a public register of disqualified directors which can be viewed at www.companieshouse.gov.uk.

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