Four former directors of Luton Town Football Club (LTFC) have been disqualified from acting as directors for a combined 19 years, following a six-day trial at the high court.William John Tomlins, the former chairman of LTFC, was disqualified for six years while Derek Robert Peter, the former chief executive and a chartered accountant, was disqualified for seven years on September 5 in London.
The two remaining directors, Richard Sidney Bagehot and John Mitchell, were each disqualified for three years after the Insolvency Service spearheaded a successful investigation and proceedings.
The directors had breached Football Association (FA) and FIFA rules and had caused LFTC to trade at the risk and detriment of HM Revenue and Customs (HMRC). The club was in arrears with PAYE and NIC within a few months of starting to trade and recently had not declared or paid its VAT liability.
Between July 2004 and February 2007, LTFC acted in breach of FA and FIFA rules and regulations on payments to football agents.
The FA enquiry found that the company had 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 £3.5m. The court heard there was a pattern of non-payment and chasing from HMRC.
Robert Burns, head of investigation and enforcement services at The Insolvency Service, said: “One of the main purposes of the Company Directors Disqualification Act is to ensure that proper standards of conduct of company directors is maintained and to raise those standards where appropriate.
“These disqualifications should serve as a reminder that The Insolvency Service will investigate unacceptable conduct by company directors regardless of the nature of the business involved.”