The 11 year ban the Company Director named in this case starts today, the 3rd of July 2023.
Francesca Ashby (“Ms Ashby”) caused Dome Event Hire Ltd (“Dome”) to apply for a Government backed Bounce Back Loan (“BBL”) in the sum of £50,000 for which it was not eligible for and to failed to use its entirety for the economic benefit of Dome.
In that:
- Dome was incorporated on 4 May 2016.
- The BBL Scheme allowed businesses to borrow between £2,000 up to 25% of a business’ turnover with the maximum loan available being £50,000.
- To qualify for a £50,000 BBL, the BBL application would have stated that Dome’s turnover was £200,000 or more.
- Dome was not eligible to use an estimated turnover as it was incorporated before 01 January 2019. The turnover recorded in Dome’s accounts for the years ending 31 May 2017, 2018, and 2019 was £59,057, £92,032, and £71,310 respectively.
- Dome’s bank statements show in the 12-month period up to the receipt of BBL. Dome received income of £141,564.
- Dome would have been eligible for a maximum BBL of £35,391.
- Dome obtained a BBL of £50,000 through Metro Bank which was received on 15 June 2020.
- Prior to the receipt of BBL, the bank account was overdrawn by £2,971.24.
- Between 15 June 2020 and 10 July 2020, payments totalling £32,579 which consist of £10,579 to Ms Ashby, £2,000 to a connected individual and £20,000 to third party company.
- There is no evidence that the funds were applied for the economic benefit of the company.
- Dome was placed in Creditor’s Voluntary Liquidation on 9 April 2021 At Liquidation, £50,000 remained outstanding in respect of the BBL.
- Ms Francesca Ashby (“Ms Ashby”) failed to ensure that Dome maintained and/or preserved adequate accounting records from 1 June 2019 to 9 April 2021 or in the alternative, has failed to deliver up such records as were maintained to the Liquidator.
In the absence of the Company records, it has not been possible to:
- Establish whether DLA of £35,000 recorded in the Statement of Affairs as owed by Dome to Ms Ashby is accurate
- Establish how fixed assets valued at £7,876 as at 31 May 2019 were disposed of, given that Dome’s statement of Affairs recorded that it had no assets on liquidation.
- Establish the purpose of various transactions made from the Company’s bank account.
