The former finance director of failed business Farepak could lose his right to be a director in a UK business if High Court legal proceedings to disqualify the company board are successful.
This week it was confirmed that following a long Insolvency Service investigation, an application for disqualification orders was filed on 26 January against the board – including FD Stevan Fowler and eight other directors.
Business Minister Edward Davey confirmed: “Cases like Farepak are often very complex and complicated so take time - but we can confirm that High Court proceedings seeking disqualification orders have now started."
The potential 15-year disqualification period proceeding, “made in the public interest”, is in relation to their conduct as directors of European Home Retail Group (EHR) and its Christmas hamper savings subsidiary Farepak Food & Gifts.
On 13 October 2006 Farepak entered administration and was later placed in creditors’ voluntary liquidation, while EHR entered administrative receivership and a winding up order was subsequently made.