Former Hatters directors banned from running companies
FOUR former Luton Town directors have been disqualified from acting as directors or in any way managing or controlling limited companies following a six-day trial at the High Court in London.
Former Hatters chairman Bill Tomlins was disqualified for six years; Derek Robert Peter, the former Chief Executive Officer and a chartered accountant was disqualified for seven years, and Richard Sidney Bagehot and John Mitchell were each disqualified for three years.
The disqualifications follow an investigation and proceedings brought by The Insolvency Service.
The investigation found that Hatters directors had breached FA and FIFA rules and caused the club to fall behind with PAYE and national insurance contributions. The club also hadn’t declared or payed its VAT liability.
The investigation found that between July 2004 and February 2007 the Hatters acted in breach of FA and FIFA rules and regulations on payments to football agents. The company had also dealt with unlicensed football agents and made payments totalling £157,000 through its holding company Jayten Stadium Limited (‘JSL’) using funds provided by LTFC which should have been paid by LTFC itself and routed through the FA.
During the same period of July 2004 and February 2007 the directors individually either caused or allowed the company to trade at the risk of and ultimate detriment to HMRC which was owed £3,578,661. The Court heard there was a pattern of non-payment and chasing from HM Revenue and Customs.
In his judgement Mr Registrar Nicholls said that this was “not regarded by this court as a ‘minor misdemeanour’. The allegation is a serious one demonstrating a disregard for rules and regulations with severe consequences for the club and its supporters.”
In the spring of 2007 the FA started an investigation which resulted in 15 charges against LTFC for breaches of the FA and FIFA Rules and Regulations concerning payments to football agents from July 2004 to February 2007 which resulted in a fine of £50,000 and a 10 point deduction for the 2008/2009 football season.
The Hatters faced a further 20 point penalty related to the club’s inability to agree a Company Voluntary Agreement (CVA) to exit administration, with the Football League pointing out that it was the third time in 10 years that Luton have been in such a position.
The Hatters were unable to recover from the unprecedented 30 point penalty and were ultimately relegated from the Football League.
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