LAUNCHEXCEPT LIMITED DIRECTOR DISQUALIFIED - ROBERT KENNETH NEWMARK

8 Mar 2001 12:00 AM

On 22 February 2001 in the High Court of Justice, Robert Kenneth Newmark of 111-113 Camden High Street, London NW1 7JN, was disqualified from inter alia acting as a director of and taking part in the management of a company for five years for his conduct as a director of Launchexcept Limited (''Launchexcept'').

Launchexcept, whose last principal trading address was 83/85 Wardour Street, London W1V, was engaged in business as a cocktail bar and was wound up on 13 September 1995 with a deficiency as regards creditors of #241,926. Matters of unfit conduct found by the Court included the director:

* breaching his fiduciary duty to Launchexcept by causing or permitting it to finance Target Resources Limited (''Target''), a previous insolvent company, when there was little or no prospect of Target repaying the indebtedness (except in circumstances that would amount to a preference) and by attempting to account for repayment of the indebtedness by management charges raised by Target which were either fictitious, unjustified or at the very least excessive and that this was ultimately to the detriment of the creditors of Launchexcept;

* breaching his fiduciary duty to Launchexcept by causing or permitting it to incur expenditure of at least #110,758 on improvements to leasehold premises, in addition to paying rental under a purported operating lease, for which Launchexcept derived little or no benefit as the lease was in the name of Mr Newmark and that this was ultimately to the detriment of the creditors of Launchexcept, particularly during the time in which the company was in a Company Voluntary Arrangement (''CVA'');

* not paying or delaying payment to Customs and Excise for VAT and instead retaining the VAT due as involuntary finance for Launchexcept''s continued trading and this continued even after Launchexcept had entered into a CVA;

* failing to maintain accounting records in accordance with section 221 of the Companies Act 1985;

* Failing to co-operate with the liquidator in breach of section 235 of The Insolvency Act 1986.

The Court was advised by the Claimant, the Secretary of State for Trade and Industry, of various matters in mitigation which had been put forward by the Defendant and this served to reduce the period of disqualification being sought against him.

NOTES FOR EDITOR

1. Section 6 of the Company Directors Disqualification Act 1986 allows the Court to make a disqualification order of up to 15 years for unfit conduct.

2. Requests for further details should be made in the first instance to DTI Press Office Tel: 0171 261 8813 Fax: 0171 928 6974.

3. Solicitors for the Insolvency Service are Howes Percival of The Guildyard, 51 Colegate, Norwich, NR3 1DD.

4. The Insolvency Service''s Hotline number is 0845 601 3546.

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