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09/05/2011
MG Rover’s Phoenix Four Disqualified As Directors
The four former directors of Phoenix Venture Holdings Limited and MG Rover Group Limited, also known as The Phoenix Four, have each undertaken not to act in the management of limited companies for varying periods, of between three and six years.
The disqualification undertakings conclude the enforcement action by The Insolvency Service on behalf of the Government.
Since the publication of the independent report into the financial affairs of MG Rover and its associated companies, The Insolvency Service has been taking forward intended proceedings to disqualify the directors. In line with the findings of the independent report, it was the position of The Insolvency Service that taken as a whole, the overall conduct of the Phoenix Four made them unfit to be company directors. The Service particularly highlighted the report’s findings in respect of the way the directors manipulated the assets and income streams through the use of companies in which they, rather than the creditors of MG Rover had an interest, allowing them to benefit through large salaries, dividends and profits.
Commenting on the disqualification undertakings Edward Davey, Minister with responsibility for corporate governance and company law said: “These disqualification undertakings represent a successful conclusion to a lengthy and complex investigation into the collapse of MG Rover. Peter Beale, John Towers, Nick Stephenson and John Edwards have each been banned from being involved in the management of any company for several years. The outcome of this case serves as an important reminder that unacceptable conduct by company directors can result in lengthy periods of disqualification.”
Peter Beale has been disqualified from acting in the management of companies for six years; John Towers and Nick Stephenson have each been disqualified for five years and John Edwards for three years.
MG Rover Group, the manufacturer of Rover and MG cars went into administration on April 8, 2005 owing creditors nearly £1.3 billion. The Secretary of State appointed Inspectors to investigate the affairs of MGRG, its parent company Phoenix Venture Holdings (PVH) and MGR Capital Limited between the purchase of MGRG from BMW in May 2000 and the date of it entering administration.
The disqualification undertakings were accepted on behalf of the Secretary of State on Tuesday 26 April 2011 and come into effect on Tuesday 17 May 2011.
(BMcN/GK)
The disqualification undertakings conclude the enforcement action by The Insolvency Service on behalf of the Government.
Since the publication of the independent report into the financial affairs of MG Rover and its associated companies, The Insolvency Service has been taking forward intended proceedings to disqualify the directors. In line with the findings of the independent report, it was the position of The Insolvency Service that taken as a whole, the overall conduct of the Phoenix Four made them unfit to be company directors. The Service particularly highlighted the report’s findings in respect of the way the directors manipulated the assets and income streams through the use of companies in which they, rather than the creditors of MG Rover had an interest, allowing them to benefit through large salaries, dividends and profits.
Commenting on the disqualification undertakings Edward Davey, Minister with responsibility for corporate governance and company law said: “These disqualification undertakings represent a successful conclusion to a lengthy and complex investigation into the collapse of MG Rover. Peter Beale, John Towers, Nick Stephenson and John Edwards have each been banned from being involved in the management of any company for several years. The outcome of this case serves as an important reminder that unacceptable conduct by company directors can result in lengthy periods of disqualification.”
Peter Beale has been disqualified from acting in the management of companies for six years; John Towers and Nick Stephenson have each been disqualified for five years and John Edwards for three years.
MG Rover Group, the manufacturer of Rover and MG cars went into administration on April 8, 2005 owing creditors nearly £1.3 billion. The Secretary of State appointed Inspectors to investigate the affairs of MGRG, its parent company Phoenix Venture Holdings (PVH) and MGR Capital Limited between the purchase of MGRG from BMW in May 2000 and the date of it entering administration.
The disqualification undertakings were accepted on behalf of the Secretary of State on Tuesday 26 April 2011 and come into effect on Tuesday 17 May 2011.
(BMcN/GK)
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