Company Directors disqualified leaving customers and charities without funds.
Simon Smith and Nicholas Capsey of Global Enduro Ltd ran a travel company that provided motorbike adventure holidays and supported charities through a fee charged to every participant.
Following a fall in bookings which was said to be the result of a negative social media campaign against them the company went into administration on 28th January 2013.
The two former directors were disqualified from acting as company directors for a combined 14 years after failing to ensure that £207,055 raised under commercial participation agreements was paid to five charities.
Administration left Global Enduro Ltd with assets of £18,704, liabilities of £498,672 and a deficiency to creditors of £479,968.
According to the Insolvency Service, the charity owed money to various charities including:
- The Nelson Mandela Children’s Fund,
- The Rainbow Trust Children’s Charity,
- The international development charity Adventure Ashramand
- Sentebale, the charity set up by Prince Harry and Prince Seeiso of Lesotho.
In addition to failing to pay the charities Global Enduro Ltd also broke package holiday regulations by failing to put insurance protection in place for its customers, which breached the company’s own terms and conditions. This left 39 customers with a combined £104,000 loss for package holidays they had booked and paid for when the company went into administration.
The disqualification prevents either one of them acting as a company director, taking any part in the promotion, formation or management of a company or limited liability partnership, and being a receiver of a company’s property.
A spokeswoman for the Rainbow Trust said: “The money due to our charity amounted to more than £47,000 and its loss was significant to us because we are an organisation that relies almost entirely on charitable donations. Global Enduro had raised significant funds in previous years for us and a number of other organisations, which were gratefully received.”
Smith gave an undertaking to the Insolvency Service not to act as a director last year and was disqualified for eight years from 4 June 2015.
While Capsey originally opposed the disqualification, but a settlement was agreed before a hearing was due to begin in January and he was disqualified for 6 years from 12 February.
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