Legacies' End for Disqualified Will & Probate Directors
14 Jul 2004 03:45 PM
Two directors of a business providing will and probate services which
failed with total debts estimated at 4.5 million are prevented from
and have both agreed not to hold directorships or take any part in
company management for 11 years each.
Paul William Nathanial Flint ("Mr Flint") age 40 of Bankart Lane,
Chelmer Village, Chelmsford, Essex, and Nicholas Furr, age 39 of
Nymans Close, Luton, Bedfordshire directors of Legacies (Will &
Probate Services) Limited which carried on business from premises at
Knight Court, 49 Crown Street, Brentwood, Essex CM14 4BD were
disqualified for their conduct as directors of the company following
an investigation by the Official Receiver at the Insolvency Service's
Public Interest Unit in London.
The company, Legacies (Will & Probate Services) Limited, was forced
to close by a High-Court Order on the grounds of public interest in
March 2002 after a DTI investigation revealed the company had
misapplied nearly 4 million owed to the beneficiaries of hundreds of
wills. At the time of the order the judge Mr Registrar Jaques, said
the company was preying on people at a time when they were most
vulnerable.
The investigation into the conduct of Mr Flint and Mr Furr, showed
that both were unfit to be company directors because they had used
the money owed to the beneficiaries of hundreds of wills to pay the
company's debts. Following the investigation, the Liquidator was
able to return 200,000 to the beneficiaries of the estates.
Notes to editors
1. Mr Flint did not dispute the following matters of unfit conduct:
He caused or allowed 5,547,069 of trust monies to be transferred out
of Legacies (Will & Probate) Limited's bank account, to its office
current account. This 5,547,069 was analysed in the accounting
records of Will & Probate as "fees". However, only 1,586,803 of
that 5,547,069 represented payments for fees to which Will & Probate
was legitimately entitled pursuant to contract for probate services
supplied. The remaining balance, of 3,960,266, represented trust
monies to which Will & Probate had no entitlement whatsoever. This
money was applied toward financing the continued loss making trading
of Will & Probate.
2. Mr Furr did not dispute the following matters of unfit conduct: He
caused or allowed more than 4,017,532 of trust monies to be
transferred out of Will & Probate's bank account (the Client Account)
to its office current account. The transfers totalling 4,017,532 in
the period from 31 March 1999 to liquidation were analysed in the
accounting records of the Company as "fees". However, only
1,190,546 of that 4,017,532 represented payments for fees to which
Will & Probate was legitimately entitled pursuant to contract for
probate services supplied. The remaining balance, of 2,826,986,
represented trust monies to which Will & Probate had no entitlement
whatsoever. This money was applied toward financing the continued
loss making trading of Will & Probate.
3. The Insolvency Service, on behalf of the Secretary of State for
Trade & Industry, has responsibility (under Section (6) of the
Company Directors Disqualification Act 1986) for the investigation of
the conduct of directors of failed companies and for the
disqualification of those who are considered to be unfit to be
involved in the management of companies in the future.
4. Official Receivers deal with the administration and investigation
of companies that are put into liquidation by Order of the Court and
report on the conduct of the directors of those companies, working to
identify behaviour that might make those directors unfit to be
involved in company management in the future. The Insolvency
Service considers the Official Receiver's reports and acting on
behalf of the Secretary of State directs the Official Receiver to
take disqualification action against directors where appropriate.
5. A court can disqualify directors from directorships and
involvement in the management of companies for between two and 15
years for unfit conduct. If a director breaches a Disqualification
Order they can be prosecuted and may be punished by a fine, a prison
sentence of up to two years, or both, and may be made personally
liable for the company debts.
6. 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 of between two and 15 years. This avoids a court
process, but the penalties for breach of an undertaking are the same
as for breach of a court order.
7. The Insolvency Service maintains a public register of individual
bankruptcies which can be viewed at www.insolvency.gov.uk .
Companies House maintains a public register of disqualified directors
that can be viewed at www.companieshouse.gov.uk. Addresses given are
correct at the time of the company failure.
8. 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 Disqualified
Directors Hotline on 0845 601 3546 (24 hour message service).
General enquires to The Insolvency Service should be addressed to the
General Enquiries Help line on 020 7291 6895.
For further information about the Insolvency Service and
disqualifications see:
www.insolvency.gov.uk
www.insolvency.gov.uk/guidanceleaflets/directors/gdindex.htm
The Insolvency Service, 21 Bloomsbury Street, London WC1B 3QW
An Executive Agency within the DTI
An Executive Agency within the DTI