The Analysis News & Opinions
Director caused finance firm to lose thousands
A company director has had his bankruptcy restrictions extended for his role in causing a finance company to lose more than £177,000 Terence Coventry from Gainsborough, Lincolnshire, was appointed the sole director of Alliance Traffic Services Limited in April 2016 before he caused the company to enter into a factoring agreement a month later. The factoring agreement, which Mr
Coventry personally guaranteed, set out the terms where an independent finance firm would buy Alliance Traffic Service’s invoices in return for advanced finances. However, between May 2016 and March
2017, Mr Coventry abused his position of trust as a director and caused Alliance Traffic Service to breach the terms and conditions of the factoring agreement, despite being personally liable.
He failed to ensure company sales invoices
were correctly produced and some customers paid money directly to Alliance Traffic Service’s bank account despite it being due to the factoring company. This resulted in the finance company losing more than £177,000. Alliance Traffic Service entered into compulsory liquidation and was wound up in November 2017. With a substantial shortfall owed, the finance company made claims against guarantees Mr Coventry was personally liable for and, in January 2018, Mr Coventry was made bankrupt as he could not afford to pay the debt. Bankruptcy restrictions, such as declaring
bankrupt status when borrowing more than £500, typically last until the bankruptcy ends after 12 months. The Insolvency Service applied to have Mr Coventry’s
bankruptcy restrictions extended due to his abuse of trust and causing the finance firm to lose thousands of pounds. Gerard O’Hare, official receiver for the
Insolvency Service, said: “Terence Coventry’s conduct in running his business fell well below the standards required of an individual in business and this led to his insolvency. The seven-year restriction should help protect the business community and act as a warning to others not to act in this way.”
Developer is fined after ignoring legal data-access request
Organisations have been reminded that they could face a criminal prosecution if they fail to respect the public’s legal right to access their personal information. The warning came from the Information Commissioner’s Office (ICO) after housing developer Magnacrest Ltd was fined by Westminster Magistrates for breaching data- protection laws. The company did not comply with an
enforcement notice issued by the ICO and so the regulator prosecuted. The court heard that an individual had
submitted a subject access request (SAR) on 17 April 2017. An SAR allows someone to request all the personal information an organisation holds about them. But Magnacrest, which is based in
Hazlemere, Buckinghamshire, failed to provide the information within the required timescale of 40 calendar days and the
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individual complained to the data-protection regulator. The ICO served an enforcement notice
on the company ordering it to comply with the law and provide the requested information. When the company failed to obey the notice, the ICO brought a criminal
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prosecution under s47(1) of the Data Protection Act 1998. Magnacrest pleaded guilty to a charge of
failing to comply with an enforcement notice when it appeared before Westminster Magistrates on 6 February 2019. The company was fined £300, with a £30
victim surcharge, and was ordered to pay £1,133.75 towards prosecution costs. Mike Shaw, the ICO’s criminal
enforcement manager, said: “The right to access your own personal information is a fundamental and long-standing principle of data-protection law. New laws brought into effect last May strengthen those rights even further. “Organisations not only have to respect
this right but must also respect notices from the ICO enforcing the law. If they fail to do so then they must accept the consequences, which can include a criminal prosecution.”
March 2019
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