Politics

David Parker, the business manager of UB40 and a qualified tax accountant, gave a disqualification undertaking to the Secretary of State for Business, Energy and Industrial Strategy on 15 June 2017, four days into a disqualification trial.

On the same date, Earl Acton Falconer, UB40’s bass player also gave a disqualification undertaking to the Secretary of State, which prevents him from managing or controlling a company without leave of the Court until 5 July 2021.

Lanval Reginald Storrod who was also connected with the band gave a disqualification undertaking to the Secretary of State, which prevents him from managing or controlling a company without leave of the Court until 5 July 2021. The undertaking prevents him from managing or controlling a company without leave of the Court until 5 July 2028.

The voluntary undertakings were given during a trial that commenced on 12 June 2017, in which a number of witnesses gave evidence, including UB40’s Terence ‘Astro’ Wilson and his wife Dawn Wilson.

The misconduct accepted by David Parker, was that he breached his fiduciary duty as a director of Reflex Recordings Ltd (Reflex) by deliberately and knowingly causing the dissipation of £252,980 of company assets between 9 December 2013 and 18 December 2013, without making due provision for subrogated rights and/or claims of at least two creditors. The dissipation was at a time when Reflex was insolvent and Mr Parker knew about the subrogated rights and/or claims of at least two creditors.

The misconduct accepted by Mr Falconer and Mr Storrod, was that each breached their fiduciary duties as directors of Reflex by abrogating their duties resulting in or, in the alternative, by allowing, the dissipation of £252,980 of company assets between 9 December 2013 and 18 December 2013, without making due provision for subrogated rights and/or claims of at least two creditors. The dissipation was at a time when Reflex was insolvent and they knew, or ought to have known about the subrogated rights and/or claims of at least two creditors.

Reflex’s assets consisted of the music catalogues of UB40, which were charged to a bank. The company conducted business in regard to the affairs of UB40 including receiving royalties in connection with the catalogues. On 18 December 2013 Reflex entered administration following the appointment of administrator by the Court.

Susan MacLeod, Chief Investigator, Insolvent Investigations Midlands & West at the Insolvency Service, said:

In investigating insolvent companies, the Insolvency Service always looks very closely at individuals who demonstrate a disregard for creditors and appropriate action is taken where wrongdoing is uncovered.

Notes to editors

Reflex Recordings Ltd (company registration number: 05972216) was incorporated on 19 October 2006 with its registered office at C/O Parkers, Corner Chambers 590a Kingsbury Road Birmingham B24 9ND. David Parker and Lanval Storrod were appointed directors on 19 October 2006. Earl Falconer was appointed as a director on 01 July 2008.

Subrogation occurs in property/casualty insurance when a company pays one of its insureds’ for damages, then makes its own claim against others who may have caused the loss, insured the loss, or contributed to it.

David Parker’s 11 year disqualification undertaking, Earl Falconer’s 4 year disqualification undertaking and Lanval Storrod’s 4 year disqualification undertaking were all signed on behalf of the Secretary of State for Business, Energy and Industrial Strategy on 15 June 2017, each will be effective from 6th July 2017.

The matter of unfitness, which David Parker did not dispute in the disqualification undertaking, was that he breached his fiduciary duty as a director of Reflex Recordings Ltd (Reflex) by deliberately and knowingly causing the dissipation of £252,980 of company assets between 9 December 2013 and 18 December 2013, without making due provision for subrogated rights and/or claims of at least two creditors. The dissipation was at a time when Reflex was insolvent and Mr Parker knew about the subrogated rights and/or claims of at least two creditors.

• the bank registered a charge against Reflex on 06 October 2008. Personal guarantees were also given by six of Reflex’s directors at that time
• Reflex filed three abbreviated accounts at Companies House, showing it was balance sheet insolvent, with net liabilities, for the years ending 31 March 2009, 2010 and 2011. On 13 January 2011 a bank demanded repayment of £1,915,192 from Reflex for a loan obtained in 2008
• Reflex made a partial payment to the bank in February 2012. The bank subsequently enforced three of the personal guarantees and sold these properties to reduce further the demand against Reflex. As a consequence these parties replaced the bank as creditors in Reflex and were owed at least £320,150
• on 2 July 2013 an email was sent to Reflex’s solicitors and one of Reflex’s directors was copied into it. This email advised them of the subrogated rights and/or claims of at least two creditors
• on 6 December 2013 Reflex sold its final asset and settled the bank’s charge against it in full. On 09 December 2013, Reflex received surplus funds of £330,337
• on 9 December 2013 a freezing order was obtained against Reflex and it was served on the company on 10 December 2013
• between 09 December 2013 and 10 December 2013 Reflex dissipated £252,980. These payments were made against invoices dated 04 December 2013 and 05 December 2013 and each invoice was paid in full
• of this sum, £19,980 was paid to the two creditors with subrogated rights and/or claims. This reduced their subrogated rights and/or claims to £300,170, which was outstanding at the date of Administration
• by the date of Administration Reflex sole asset was £37,460 cash

The matters of unfitness, which Earl Falconer and Lanval Storrod did not dispute in their Disqualification Undertakings, were they breached their fiduciary duties as directors of Reflex by abrogating their duties resulting in or, in the alternative, by allowing, the dissipation of £252,980 of company assets between 09 December 2013 and 18 December 2013, without making due provision for subrogated rights and/or claims of at least two creditors. The dissipation was at a time when Reflex was insolvent and they knew, or ought to have known about the subrogated rights and/or claims of at least two creditors.

• the bank registered a charge against Reflex on 06 October 2008. Personal guarantees were also given by six of Reflex’s directors at that time
• Reflex filed three abbreviated accounts at Companies House, showing it was balance sheet insolvent, with net liabilities, for the years ending 31 March 2009, 2010 and 2011. On 13 January 2011 a bank demanded repayment of £1,915,192 from Reflex for a loan obtained in 2008
• Reflex made a partial payment to the bank in February 2012. The bank subsequently enforced three of the personal guarantees and sold these properties to reduce further the demand against Reflex. As a consequence these parties replaced the bank as creditors in Reflex and were owed at least £320,150
• on 2 July 2013 an email was sent to Reflex’s solicitors and one of Reflex’s directors was copied into it. This email advised them of the subrogated rights and/or claims of at least two creditors
• on 6 December 2013 Reflex sold its final asset and settled the bank’s charge against it in full. On 09 December 2013, Reflex received surplus funds of £330,337
• on 9 December 2013 a freezing order was obtained against Reflex and it was served on the company on 10 December 2013
• between 09 December 2013 and 10 December 2013 Reflex dissipated £252,980. These payments were made against invoices dated 04 December 2013 and 05 December 2013 and each invoice was paid in full
• of this sum, £19,980 was paid to the two creditors with subrogated rights and/or claims. This reduced their subrogated rights and/or claims to £300,170, which was outstanding at the date of Administration
• by the date of Administration Reflex sole asset was £37,460 cash

David Parker’s date of birth is 27 March 1962 and he is of Birmingham.

Earl Falconer’s date of birth is 23 January 1959 and he is also of Birmingham.

Lanval Storrod date of birth is 8 April 1959 and he is of Bromsgrove, Worcestershire.

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

• act as a director of a company
• take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
• be a receiver of a company’s property

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Persons subject to a disqualification order are bound by a range of other restrictions.

The Insolvency Service, an executive agency sponsored by the Department for Business, Energy and Industrial Strategy (BEIS), administers the insolvency regime, and aims to deliver and promote a range of investigation and enforcement activities both civil and criminal in nature, to support fair and open markets. We do this by effectively enforcing the statutory company and insolvency regimes, maintaining public confidence in those regimes and reducing the harm caused to victims of fraudulent activity and to the business community, including dealing with the disqualification of directors in corporate failures. Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

BEIS’ mission is to build a dynamic and competitive UK economy that works for all, in particular by creating the conditions for business success and promoting an open global economy. The Criminal Investigations and Prosecutions team contributes to this aim by taking action to deter fraud and to regulate the market. They investigate and prosecute a range of offences, primarily relating to personal or company insolvencies.

Media enquiries for this press release – 020 7674 6910 or 020 7596 6187

You can also follow the Insolvency Service on: * Twitter * LinkedIn * YouTube

read more

My first visit to Morocco was in 1998. I liked the country so much that I came back again in 2000. Those two visits left me with a tremendously positive impression of a country rich in history, culture and diversity. Little did I think that I would be back here nearly 20 years after my first visit as the British Ambassador.

It is a huge honour and a privilege to act as the representative of the UK in Morocco. I am delighted to be here now and to arrive during Ramadan is an additional blessing. Over the years, I have enjoyed Ramadan in Jordan, Kuwait and Egypt and I am looking forward to sharing it in Morocco too, as well as to learning more about Morocco during my time here. My family (who are not yet with me in Rabat) are also very excited to be moving to Morocco and are looking forward to living and learning here.

That the Morocco/UK relationship is a strong and enduring partnership, is clearly demonstrated by the fact that it is already more than 800 years old. As British Ambassador, I will be following in the footsteps of innumerable predecessors, dating back to the formal establishment of diplomatic relations when Her Majesty Queen Elizabeth I sent her Ambassadors to the Court of Morocco’s Saadi Sultanate. In exchange, Sultan Ahmed al-Mansour sent his Principal Secretary, Abd el-Ouahed Ben Massaoud as Moroccan Ambassador to the Court of Queen Elizabeth. This appointment has had a lasting impact on British culture – Abd el-Ouahed Ben Massaoud is reputed to have been the inspiration for Shakespeare’s hero, Othello. Queen Elizabeth I spoke of Morocco in very warm terms – “The great friendship and cooperation that exists between our Crowns” – a warmth and closeness between the monarchies of both our countries that endures to this day.

That Royal relationship is replicated across our societies – each year more than 600,000 British tourists visit Morocco, drawn by the history, culture, geography, climate and most importantly by the warmth and generous hospitality of the people of Morocco. One of my ambitions for my time here in Morocco is to encourage even more British tourists to visit and have the chance to explore and get to know this unique Kingdom and its people.

The UK and Morocco also enjoy close commercial ties, with bilateral trade worth more than $2 billion each year. The UK is among the top six foreign investors to Morocco. Another of my priorities is to foster an ever closer partnership between Moroccan companies and their British counterparts to further strengthen these commercial ties and increase bilateral trade through mutual support in niche commercial areas.

One of those niche areas is renewable energy, where there are some very exciting opportunities. Morocco aims to increase its renewable electricity generation to 52% of energy demand and to reduce greenhouse gas emissions to 32% by 2030. These goals clearly demonstrate Morocco’s ambition and drive in this sector and the potential to become a global leader in the sustainable and renewable energy sector. In this context, the city of Ouarzazate, renowned as the location for the filming of Lawrence of Arabia, is pioneering a revolutionary solar power station, one of the largest of its kind in the world. The UK also has substantial experience in renewable energy and in regulating energy markets. Morocco also needs gas for its power stations and British companies are well-placed to work with Morocco to meet this need.

UK diplomatic policy in North Africa is focused on building a secure, peaceful and prosperous region, underpinned by shared values of human rights and democracy. This policy aim is supported by a number of projects in which Morocco is a key partner. For example, earlier this year the Westminster Foundation for Democracy (WFD) and the House of Councillors of the Moroccan Parliament signed a Memorandum of Understanding whose objective is to support the Parliament in upholding human rights, share public policy evaluation experiences and help Morocco’s Parliamentary Research Centre build its capacity.

Another area of shared interest is education and academia. I am looking forward to working with Morocco on building deeper academic and educational links between our two countries. The UK is home to some of the best universities in the world and we are proud to share them with Morocco’s future leaders through our Chevening Programme, through which Moroccan students have the opportunity to study at Universities all over the UK. So far, over 160 talented Moroccans have benefitted from this great initiative and I hope very much to increase that number during my time as Ambassador.

The relationship between our two countries today is in many respects stronger now than it has ever been and I look forward to building on this relationship to continue to develop an even closer partnership of equals across the different sectors which bind Morocco and the UK so closely together.

I would like to close by taking this opportunity to wish you a happy, blessed and above all peaceful end of Ramadan and a happy Eid.

read more