Tuesday 12:43
Two Liverpool based charity publishers have been closed down by the High Court following an investigation by Companies Investigation Branch of the Insolvency Service.
Publications Limited and PPA (UK) Limited published funbooks on behalf of the charity Tenovus, the cancer charity for the charity to sell in its shops throughout the country. However the companies mislead advertisers into thinking that all their advertisement fees would go directly to the charity when in fact less than 1% of the £500,000 collected by Publications Ltd was paid over to the charity.
The companies also claimed to be working on behalf of the emergency services in producing "The 365 Emergency Services Annual Journal" when it had no links to any of the emergency services and all the advertising revenue went directly to the companies.
The investigation revealed that the companies failed to comply with charity regulations by not informing advertisers of the proportion of their fees which would go to charity. The advertisers were aggressively pursued for payment and advertisers who failed to pay were harassed for payment and threatened with bailiffs.
Companies Investigation Branch is aware of a number of similar companies operating in this manner and has provided some tips for dealing with these sorts of companies. For more information please visit http://www.insolvency.gov.uk.
NOTES TO EDITORS
1. The registered office of the Publications Limited and PPA (UK) Limited was at 11-13 Victoria Street Liverpool L25 5QQ. Both companies traded from 4th Floor, 1 Water Street Liverpool L2 0RE.
2. The petitions to wind-up the companies in the public interest were presented on 9th January 2007 under the provisions of s124A of the Insolvency Act 1986 following investigations carried out under section 447 of the Companies Act 1985 by the Companies Investigation Branch of the Insolvency Service. A provisional liquidator was appointed in respect of PPA (UK) Limited on 23rd January 2007 and the Winding-up Orders were made on 9th March 2007.
3. The Insolvency Service administers the insolvency regime investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent.
4. The Insolvency Service carries out confidential enquiries on behalf of the Secretary of State for Trade and Industry through Companies Investigation Branch. The Service also authorises and regulates the insolvency profession; deals with disqualification of directors in corporate failures; assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees; provides banking and investment services for bankruptcy and liquidation estate funds; and advises ministers and other government departments on insolvency law and practice.
5. All public enquiries concerning the affairs of the company should be made to: The Official Receiver, Public Interest Unit, PO Box 326, 17 - 21 Chorlton Street, Manchester, M60 3ZZ. Tele: 0161 934 4182 Email: piu.north@insolvency.gsi.gov.uk
Further information about the work of The Insolvency Service is available from http://www.insolvency.gov.uk
Insolvency Service, 21 Bloomsbury Street, London, WC1B 3QW.
Client ref Ins/Comms/47
