A nine-year directorship ban has been imposed on Neville Taylor, 57, who stands accused of systematically undermining the UK’s insolvency system by aiding struggling business owners in debt evasion. Taylor, who held directorships in more than 400 companies, received payments totalling £270,000 from the operators of a controversial scheme designed to replace directors of failing enterprises.
The government’s Insolvency Service investigation centred on 12 companies under Taylor’s directorship which had ceased trading without entering formal liquidation procedures. The investigation revealed that Taylor made minimal efforts to verify company affairs, secure assets, or maintain proper records, constituting serious breaches of his directorial duties.
The scheme, operated by Atherton Corporate, assisted directors of over 1,000 struggling companies in avoiding tens of millions of pounds in debt obligations, including substantial sums owed to HMRC. Despite attempts by the Insolvency Service to terminate the scheme’s operations last year, recent evidence suggests it continues to function.
Stephen Hunt, partner at specialist insolvency firm Griffins, emphasised the significance of the disqualification, stating it serves as a crucial public declaration against such improper services. Dave Magrath, director of investigation and enforcement at the Insolvency Service, highlighted Taylor’s role in hampering liquidators’ efforts and causing widespread creditor losses.
The Atherton scheme’s client base included notable figures such as hospitality entrepreneur Piers Adam, known for the Mahiki and Whisky Mist nightclubs, and Mat Feakins, a former Conservative chairman of Monmouthshire county council. The scheme marketed itself as a “legal alternative to using insolvency practitioners” while effectively enabling directors to distance themselves from company failures.
The Insolvency Service is now considering pursuing action against directors who utilised the Atherton scheme, marking a significant development in the ongoing battle against corporate insolvency abuse in the UK financial sector.
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