First successful prosecution for falsifying information on the company register

A Warwickshire businessman has had to pay over £12,000 for falsifying information on the company register.

The facts of the case

In 2013, Kevin Brewer incorporated John Vincent Cable Services Ltd, and appointed former business secretary and current leader of the Liberal Democrats Vince Cable MP as a director and shareholder of the business without his knowledge. Companies House later dissolved the company and removed it from the company register.

Three years later, Mr Brewer incorporated another company – Cleverly Cloggs Ltd, appointing as directors and shareholders: Baroness Neville-Rolfe, the minister of state for the Department for Business, Energy and Industrial Strategy, James Cleverly MP, a Member of Parliament for the Conservatives, and a fictitious Israeli national named Ibrahim Aman, all without their knowledge. Companies house again dissolved the company and removed it from the company register.

Mr Brewer pleaded guilty to violating section 1112 of the Companies Act 2006, and was ordered to pay costs of £10,462.50, as well as a fine of £1,602, and a victim surcharge of £160.

Falsifying information on the company register and prosecution of directors

This is the first time that a company director has been prosecuted for falsifying information on the company register since laws governing this area came into place in 2009.

A spokesperson for Companies House said:

“Deliberately filing false information on the register is a serious offence and people who have been found to have knowingly done this can face prosecution.”

Andrew Griffiths, the Business Minister said:

“This prosecution – the first of its kind in the UK – shows the Government will come down hard on people who knowingly break the law and file false information on the company register.

Companies House works hard to protect and continually upgrade the company register, identifying potentially criminal activities and working closely with law enforcement bodies to help bring those perpetrators to justice.”

This is, of course, an unusual and extreme example of a situation whereby a director has falsified information on the company register. The government website states that there are nearly 4 million companies operating on the company register, and almost all of them operate within the boundaries of the law.

Whilst extreme, this case does emphasise that prosecution for filing false information with Companies House will be pursued with increased vigour.

Contact

If you require clarification on any of the issues discussed in this article contact Christopher Burke on 0161 684 6941.

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