Advice to organisations owed money by NTF

NICVA has retained the services of Cleaver Fulton Rankin (CFR) solicitors to advise organisations who have been involved with the company NTF UK and their director Mark Townley.

NICVA has been advised that it may be in the interest of creditors to object to NTF being struck off. As such we have asked CFR to provide a template letter (attached) by way of advice to organisations who wish to take up this option.

On 5 August 2010, Mark Townley, the Bangor man who is director of NTF, began proceedings to strike-off the company he founded only last year. This development came a matter of days after NICVA warned organisations not to hand money over to Mark Townley as part of a minbus scheme he operated. Mark Townley is now the subject of a Police investigation following complaints from numerous organisations and individuals who had dealings with the company.

NICVA asked CFR for legal advice on behalf of organisations owed money by NTF and was advised that they could object to the proposal to strike-off NTF. This may later assist in the recovery of assets or in future legal action to recover funds from directors. Subsequently NICVA instructed CFR to prepare a template letter for this purpose. While it has been designed for groups who were drawn into the minibus and boxing ring scheme it could also be amended for use by other creditors.

CFR has advised the following in relation to NTF proposal to strike-off:

• The first thing that I would advise is that even if the company is struck off and dissolved, interested parties (including creditors) can apply for the company to be restored to the register.
• Secondly, once the company has made an application to strike off it should inform all current and prospective creditors in Form 652a. Therefore the creditors in this matter should have received this form from the company within 7 days of the application.
• Thirdly, objections to the striking off must be in writing and sent to Companies House along with supporting documentation. I have listed the reasons for objecting to the strike off in the attached letter.
• Fourthly, once the company has made its strike off application, Companies House will have advertised the proposed strike off in the Gazette. The company may be struck off not less than three months after the date of the Notice if Companies House see no reason to do otherwise.

If your colleagues have any invoices or other evidence (e.g. recent cheques from NTFUK) suggesting that the company has traded in the last three months, then that evidence showed be forwarded to Companies House forthwith. It is important that this matter is progressed.

Please also note that in relation to strike off it is an offence to;

1. apply when the Company is ineligible for striking off
2. to provide false or misleading information in or in support of the application
3. not to copy all relevant parties (including creditors) within seven days
4. not to withdraw the application when the Company becomes ineligible.

The punishment for committing one of these offences includes being disqualified as a director for up to 15 years, a fine up to £5000 on summary conviction, an unlimited fine on indictment, and up to seven years imprisonment.

NICVA is grateful for the prompt advice of CFR in relation to this matter. NICVA may also look into organising a meeting of interested parties with legal advisors with regard to NTF. Organisations interested in a meeting should contact Neil Irwin at NICVA on 028 9087 7777 or email neil.irwin@nicva.org.

Organisations are advised to consult their own legal representatives in relation to this case and this article should only be viewed as free general advice.

Download the template letter

Template Letter