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Richard Ludlow

Partner - West Kent (Hadlow)

12th August 2021

Community order for banned sole director

Isaac Jacobson was the sole director of Jacob Isaacs & Co Ltd, which was liquidated in July 2017. An Insolvency Service investigation followed which led to a director disqualification claim. The sole director gave a 7 year disqualification undertaking to the Secretary of State.

Prior to the liquidation of the company and the undertaking the director had set up another company, with a similar name but with his wife as director thinking that this would make a difference. As a result, due to a process known as ‘phoenixing’, the new company picked up where the liquidated company left off.

This led to a criminal and civil action against the director. The ultimate outcome was an order of 120 hours unpaid work and community order for the banned director. Read the full story here: Gov.uk Banned Director

Julie Barnes, chief investigator at the Insolvency Service, said:

“Isaac Jacobson’s conduct at his first company was so serious that he was banned for 7 years. Rather than respect the terms of his ban, Jacobson started a phoenix company and continued in his role, attempting to hide this by putting directorship in his wife’s name.”

“This is serious misconduct suitable for criminal proceedings and his sentence should act as a deterrent to other directors who may consider not taking their duties seriously.”

For advice on being able to use a prohibited name when your company goes into liquidation or on any insolvency or dispute matters, please contact Rix & Kay Solicitors LLP and ask to speak to Richard Ludlow in the Dispute Resolution team.