LATE ACCOUNTS - DIRECTORS BEWARE
from The Independent 29 February 2004
By
Abigail Townsend
The former directors of Leeds United, including FTSE 100 hotels boss Richard
North and Royal Mail chairman Allan Leighton, could be facing censure and
possible disqualification if the football club succumbs to administration.
The club, which has debts of £81m, failed to secure an extension to a
standstill agreement with bondholders on Friday and its shares were suspended
from the London Stock Exchange. The failure to roll over the agreement took
many by surprise and it is now understood that administration is imminent.
Should this happen, the club - currently at the bottom of the Premier League
and facing relegation - will continue trading. But under the Company Directors
Disqualification Act, the administrators will have to file reports with the
Department of Trade and Industry on the actions of the club's directors.
Administrators file either "clean" reports, stating that the
director was not involved in any wrongdoing, or "adverse" ones.
These can cover a range of areas, from failing to file accounts on time and
not paying Crown creditors, to negligence and fraud. The DTI has the power to
disqualify directors and can pursue the matter through the courts if
necessary.
:: BACK TO
FROM THE PRESS MENU ::
:: HOME PAGE ::