Government Support Schemes during the Pandemic

A director who inappropriately utilised any Government support schemes during the Pandemic may be pursued by an appointed Administrator or Liquidator to repay the funds taken. This could include monies used by the director to purchase personal assets, fund an alternative business or use the funds for non-trading reasons. Also, any director who applied for any Government support in the knowledge that they did not satisfy the required criteria could also find themselves subject to an action by the Administrator or Liquidator.

If using these monies inappropriately or applying for one could equate to fraud, then this could be considered grounds for the Insolvency Service to pursue the disqualification of a director.

This could also bring a risk of criminal action being taken against a director. Directors who have concerns regarding this matter may wish to seek independent legal advice.