Two former directors of a holiday tour operator have been disqualified from acting as company directors for a combined 14 years after failing to ensure that £207,055 raised under commercial participation agreements was paid to five charities.
Simon Smith, 43, and Nicholas Capsey, 40, were both directors at Global Enduro Ltd, a travel company that ran motorbike adventure holidays and supported charities through a fee charged to every participant.
The Insolvency Service said the company suffered a fall in the number of bookings after a social media campaign against it began, and subsequently went into administration on 28 January 2013 with assets of £18,704, liabilities of £498,672 and a deficiency to creditors of £479,968.
According to the Insolvency Service, the charity owed money to Unicef, the Nelson Mandela Children’s Fund, the Rainbow Trust Children’s Charity, the international development charity Adventure Ashram and Sentebale, the charity set up by Prince Harry and Prince Seeiso of Lesotho.
Global Enduro Ltd also broke package holiday regulations by failing to put insurance protection in place for its customers, which breached the company’s own terms and conditions, according to the Insolvency Service.
This meant 39 customers lost £104,000 between them for package holidays they had booked and paid for when the company went into administration.
Smith gave an undertaking to the Insolvency Service not to act as a director last year and was disqualified for eight years from 4 June 2015.
Capsey opposed the disqualification, but a settlement was agreed before a hearing was due to begin in January and he was disqualified for 6 years from 12 February.
The disqualification prevents either one of them acting as a company director, taking any part in the promotion, formation or management of a company or limited liability partnership, and being a receiver of a company’s property.
A spokeswoman for the Rainbow Trust said: "The money due to our charity amounted to more than £47,000 and its loss was significant to us because we are an organisation that relies almost entirely on charitable donations. Global Enduro had raised significant funds in previous years for us and a number of other organisations, which were gratefully received."