Husband and wife directors jailed after diverting company funds

Partner Jeremy LawsA married couple who are former directors of a bridal boutique business have been given prison sentences for, among other things, diverting company funds to themselves.

Husband and wife Rodney and Pauline Wallace were sentenced respectively to 27 months’ imprisonment and 10 months’ imprisonment suspended for two years, after pleading guilty at Birmingham Crown Court.

They both admitted making false representations to the High Court to secure a validation order to access funds in a frozen company bank account. Anticipating that the company would be wound up, Mr Wallace then diverted £111,000 to a phoenix company. He admitted his family had received £42,000 of the diverted funds. He had also failed to deliver the company books. Mr Wallace had already been disqualified from acting as a director for nine years in February 2014.

Directors’ duties solicitors in Eastbourne, Hailsham, Bexhill and Hastings

For expert legal advice and guidance on directors’ duties, please email Jeremy Laws (Commercial Litigation Services Partner, pictured) or call him on 01323 435 900. To learn about Jeremy’s skills and experience, please view his website profile.

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