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Phoenix four banned from management

Company directors at time of MG Rover collapse barred from managing limited companies for a number of years.

MG Rover

By Jack Rix

09th May 2011

Four former directors of Phoenix Venture Holdings Liimited and MG Rover Group LImited, known as the Phoenix four, have agreed to not act in the management of limited companies for varying periods, of between three and six years. 

From left to right, Nick Stephenson, Peter Beale, John Edwards and John Towers, were found unfit to be company directors by The Insolvency Service, following an independent report into the financial affairs of MG Rover and its associated companies. Peter Beale has been disqualified from acting in the management of companies for six years; John Towers and Nick Stephenson have each been disqualified for five years and John Edwards for three years.

Commenting on the disqualification undertakings Edward Davey, Minister with responsibility for corporate governance and company law said: “These disqualification undertakings represent a successful conclusion to a lengthy and complex investigation into the collapse of MG Rover. Peter Beale, John Towers, Nick Stephenson and John Edwards have each been banned from being involved in the management of any company for several years. The outcome of this case serves as an important reminder that unacceptable conduct by company directors can result in lengthy periods of disqualification.”

MG Rover Group went into administration on April 8, 2005 owing creditors nearly £1.3 billion. The disqualification undertakings wil come into effect on Tuesday May 17.

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6 Comments

Justice is Served cold

Finally, justice is served for MG Rover, only coming six years too late. If they had done it earlier, maybe Rover would still be here.

By Vauxhallstinks on 9 May, 2011, 2:47pm

MG=Money Generator

If i had the Money these "Gentlemen" have i would be laughing all the way to my Swiss bank account.

By toycollector on 10 May, 2011, 10:40am

What a Let Off

What sort of justice is this, banned for a while, what a farce. Where Are all the many millions of pounds this mob had away of our the tax payers hard earned money, do they have to pay that back, like hell they do. Talk about laughing all the way to the bank, they must be in fits of laughter.

By AlanShaw on 10 May, 2011, 12:26pm

Germanunreliability

The Phoenix four should pay back the huge sums of money they diverted into their bank accounts and pension pots without just cause. They should have made the MG car company leaner along with a certain amount of government intervention and prepared to do battle with the worlds car makers with the promise of investment and ploughing say 10% of net profits back into the system for improved technology/products for the future before going it alone without state help as the future objective.

By Julio61 on 10 May, 2011, 4:11pm

Pointless Ban

What a waste of time - they do not need to be company directors so this is absolutely pointless.

What should be happening is suing them for fraud, or at the very least making them go and individually explain and apologise to their former employees why those employees are on benefits.

By fellwalker2000 on 10 May, 2011, 10:17pm

How many people get to walk away from a £1.3billion
company wreck with a slap on the wrist . . . .
High time penalties for this sort of white collar crime
were overhauled. In a rational world, these "corporate cowboys" would be banned for life.

By jag06 on 10 May, 2011, 11:15pm

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