Additional 11 year ban for disqualified director

| Author: Mark Peachman [Member (F/0723)] | Filed under: General News
Additional 11 year ban for disqualified director

Sunderland director banned for extra 11 years after reappointing himself while serving 7 year disqualification.

Derek Milligan (40), also known as Derrek Milligan, from Sunderland was the sole director of DMNE Limited and of Dockyard Sunderland when the Insolvency Service had begun an investigation into his activities with DMNE. He had failed to deliver up any accounting records of DMNE, in breach of both his statutory duties and a court order.

Following a creditor’s petition at court, Milligan was made bankrupt in August 2015 and resigned as director of Dockyard Sunderland.

In September 2015, Derek Milligan signed a 7 year disqualification undertaking that banned him from acting as a director from October 2015 to October 2022.

Despite being advised to seek legal advice, Milligan appointed himself a director of Dockyard Sunderland in July 2017, which had been renamed HCA Litigation Limited. He did not have the permission of the court to act as a director of HCA Litigation or to be involved in its management.

Milligan signed the company’s 2017 accounts filed at Companies House in October that year, and he also instructed solicitors about the lease on the trading premises.

Less than a year later, Sunderland City Council learned the company had absconded from the trading premises. The resulting rent arrears led to a winding up order in May 2018.

Following an investigation by the Insolvency Service, the case was heard in Newcastle County Court on 14 September 2021, where Derek Milligan was disqualified for a further 11 years.

The new disqualification order prevents Derek Milligan from directly or indirectly becoming involved in the promotion, formation or management of a company without the permission of the court.

Rob Clarke, Chief Investigator of the Insolvency Service, said:

Derek Milligan knew the restrictions he was under when he agreed to a disqualification undertaking. He couldn’t be a director or be involved in managing a company without the court’s approval. Yet he still re-appointed himself.

It’s imperative that companies’ dealings are transparent, so other businesses know exactly who is managing the company. Anyone trying to hide their involvement will be removed from the corporate arena for a lengthy period and could very possibly face criminal prosecution."

Source:  GOV.UK

Working with the Law Society

The ABI is the only association in this industry to be recognised by the Law Society of England and Wales, and included in the Law Society of Scotland's approved Supplier Scheme.

The highest independent professional bodies for solicitors put their trust in us. We’re confident you can do the same.

The ABI other partners also recognise the value of affiliation to the principal professional body in the investigation and litigation support sector:

COURTSDESK SEARCHER is an on-demand search for court cases, or parties involved in court cases, in England and Wales and the Republic of Ireland.
Scotland Law Society logo
Professional Indemnity Insurance
Thank you, your message has been sent.
A member of our team will be in touch shortly.