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The voice of Scotland’s vibrant voluntary sector

Published by Scottish Council for Voluntary Organisations

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Kids Company trustees told: take voluntary ban or face court

This news post is over 6 years old
 

By accepting a voluntary ban trustees could be struck off for shorter period

Former trustees of Kids Company must agree to a voluntary ban from them acting as company directors by next week or face legal action.

The Insolvency Service, for England and Wales, has given the trustees – including former chair Alan Yentob - a deadline of next week to take the voluntary action otherwise it will start legal proceedings.

Kids Company folded in 2015 following allegations of financial mismanagement and poor governance.

By taking the action individuals will be prevented from “running or controlling companies” for between two and a half and six years.

The advantage of voluntary action could be that trustees would suffer a shorter ban, rather than one issued by a court.

The charity collapsed in July 2015 shortly after receiving a £3m government bailout.

Following a series of investigations, the Insolvency Service wrote to the former trustees and chief executive of Kids Company in July, telling them that the Business Secretary will bring court proceedings to ban them from being company directors.

Camila Batmanghelidjh, the chief executive of Kids Company, was included in the list of those facing bans because the Insolvency Service argued she was a de facto director even though she was not a trustee.

The Insolvency Service and Bates Wells Braithwaite, lawyers representing the trustees, refused to comment.