Directors Disqualified for 17 Years for Breaching Court’s Restrictions
Directors of London scrap metal recycling firm failed to maintain tax payments despite previous court undertaking
Jay Robert Hannington, 33, and Ajay Surendranath Laxman, 53, both from London, have been disqualified for 11 and 6 years respectively.
Jay Hannington was previously disqualified in 2017 for 4 years because of misconduct while serving as a director of Capital Waste Services Limited. However, in April 2018, Jay Hannington was given permission by the court to become a director of Capital Metal Recycling Limited, subject to certain conditions. These included a specific undertaking from his co-director, Ajay Laxman, that he would keep Capital Metal Recycling’s tax affairs up to date.
But by June 2018 Capital Metal Recycling Limited had fallen behind with its tax obligations, breaching the conditions set by the court, so Jay Hannington was automatically disqualified again.
Despite being fully aware that he could now no longer serve as a director without again seeking the permission of the court, Jay Hannington continued acting as Capital Metal Recycling’s director until its liquidation on 12 August 2019.
In addition, Ajay Laxman, an accountant, knew that Jay Hannington had breached the court’s conditions, but he let him continue acting as director until March 2019.
Jay Robert Hannington admitted he was the director of a company whilst disqualified and signed a new disqualification undertaking on 8 October 2021. His new ban starts on 29 October 2021 and lasts for 11 years.
Ajay Surendranath Laxman admitted he allowed Jay Hannington to act as a director while still disqualified. His ban started on 21 September 2021 and lasts for 6 years.
The disqualifications prevent them from directly or indirectly becoming involved in the promotion, formation or management of a company without the permission of the court.
Dave Elliott, Chief Investigator of the Insolvency Service, said:
The court imposed conditions designed to protect the public, but Jay Hannington breached those conditions and then continued acting as director while disqualified.
The Insolvency Service takes these breaches of disqualification undertakings very seriously. This is reflected in the length of Jay Hannington’s new disqualification.
And Ajay Laxman’s disqualification should be a reminder to directors that allowing misconduct by a co-director is also serious misconduct.
Notes to Editors
Jay Robert Hannington is from London and he was born in June 1988.
Ajay Surendranath Laxman is from London and he was born in August 1968.
Capital Metal Recycling Limited (Company Registered Number: 08309521).
Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Persons subject to a disqualification order are bound by a range of restrictions.
Further information about the work of the Insolvency Service, and how to complain about financial misconduct