The Insolvency Services has disqualified two directors of a holiday tour operator for a total of 14 years after the pair failed to ensure that over £200,000 raised for charity under commercial participation agreements was paid to charities, including one set up by Prince Harry
Simon Smith and Nicholas Capsey, who were both directors of Global Enduro Ltd, also failed to ensure that adequate insurance protected at least 39 package tour holiday-makers, who between them lost over £104,000 when the company failed.
Smith provided an undertaking early in the proceedings and was disqualified for a period of eight years from June 2015.
Capsey provided a staunch defence to the proceedings, which were due for trial in January 2016. In the days before trial a suitable settlement was reached and he has now accepted a six-year undertaking.
Global Enduro Ltd, set up in 2003, was a travel company that mainly ran motorbike adventure holidays, supporting a number of charities by way of a fee charged to every participant over and above any further sponsorship raised by the participants. The aim was to raise funds for charities via Commercial Participation Agreements.
The company’s previous clients included both Prince Harry and Prince William, who took part in a motorbike rally organised by Global Enduro in 2008.
Following a social media campaign against it, the company experienced a drop in bookings. The financial difficulties caused by this led the directors to conclude the company could not continue to trade and the company went into administration in early 2013.
Charities owed money as a result of the company’s failure include Sentebale (a charity founded by Prince Harry and Prince Seeiso of Lesotho), Nelson Mandela Children’s Fund, the Rainbow Trust, UNICEF and Adventure Ashram.
At the time of its collapse, the company had assets of £18,704, liabilities of £498,672 and a deficiency as regards creditors of £479,968. The company had share capital of £10, making a total deficiency of £479,978.
Smith and Capsey admitted failing to ensure that the company complied with rules governing charities.
Furthermore, Global Enduro Ltd broke the Package Holiday Regulations by failing to put in place insurance protection for its package holiday customers, also breaching its own terms and conditions, which clearly stated that the company would do so to protect customers in the event of its insolvency.
Mark Bruce, chief investigator of the Insolvency Service, said: ‘When directors of a company do not comply with legislation that is designed to protect customers, and avoidable losses result, the Insolvency Service will fully investigate the circumstances.'
