Director Ban Highlights Major Insolvency Scheme
In a significant development for UK business regulation, Neville Taylor, a director of more than 400 companies, has received a nine-year disqualification following his involvement in a scheme designed to undermine the insolvency system.
The Insolvency Service announced on January 7, 2025, that Taylor, 57, was paid £266,914 by Atherton Corporate (UK) Ltd to become the sole director of hundreds of companies. The investigation revealed concerning practices across 12 specific businesses where Taylor’s conduct fell significantly short of his directorial duties.
What makes this case particularly noteworthy is the scale of missing assets. According to final filed accounts, the 12 companies had combined assets of over £8.2 million. However, by the time they entered liquidation under Taylor’s leadership, their estimated assets had plummeted to just £676,169 – representing a staggering decrease of more than £7.6 million.
Taylor’s role involved taking over as director of companies that had ceased trading but hadn’t yet entered liquidation. Operating from various correspondence addresses across Kington, Telford, Wakefield, and Dunfermline, he made minimal efforts to:
- Verify company information
- Secure business records
- Account for company assets
- Understand the companies’ trading history
Dave Magrath, Director of Investigation and Enforcement Services at the Insolvency Service, emphasized the severity of the case: “Taylor hampered efforts by liquidators to identify assets, caused widespread loss to creditors and breached his duties as a director to act in the best interest of the companies and creditors.”
The investigation focused on twelve companies spanning various sectors including construction, human resources, education, farming, IT, and water treatment:
- Abode D&B Ltd
- Bryanston Logistics Limited
- Kiln Garden Ltd
- M&G Olympic Products Limited
- Necto Build Ltd
- Prestek Services Ltd
- Rohani Limited
- S Consult Ltd
- Stoke Park Developments Ltd
- Swagger Home Furnishings Ltd
- Tier One IT Ltd
- Woden Park Limited
Particularly concerning was that six of these companies – Kiln Garden, M&G Olympic Products, Necto Build, S Consult, Stoke Park Developments, and Swagger Home Furnishings – had no identifiable assets by the time they entered liquidation. Four others – Abode D&B, Bryanston Logistics, Prestek Services, and Tier One IT – each reported assets of less than £1,000.
This case has broader implications for UK business regulation. Atherton Corporate (UK) Ltd, the company that paid Taylor, was liquidated in the public interest in August 2024, along with its connected company Atherton Corporate Rescue Limited. Additionally, five associated companies that supported the scheme by purchasing distressed companies and appointing new directors were also shut down.
The disqualification, which began on January 3, 2025, prevents Taylor from being involved in the promotion, formation, or management of any company without court permission. This enforcement action demonstrates the Insolvency Service’s commitment to maintaining the integrity of the UK’s business environment and protecting creditors’ interests.
For businesses and directors, this case serves as a stark reminder of the serious consequences of failing to fulfill directorial duties and the importance of maintaining proper corporate governance standards.
Find out more information here.