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Alex J.
Alex J., Solicitor
Category: Bankruptcy Law
Satisfied Customers: 3653
Experience:  Bankruptcy, liquidations, administrations, pre pack sales, re use of company names and director duties and offences.
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With regards ***** ***** data protection act... A national company

Customer Question

With regards ***** ***** data protection act...
A national company has taken personal information from 1000's of employees (which includes medical records, ni numbers, addresses, names,dob etc) and tens of thousands of its customers personal details over a period of several years. This company went into administration in 2012. As it did it dumped all this information (in hard copy) at a derelict site. Also at this site is evidence that for the last 6 months of trading they did not process any takings, or records of their companies transactions.
My question is this.
Could (in 2014) the CEO and the directors of this company still be held responsible for not handling or disposing of this sensitive information even though they are now discharged directors and what potential consequences could there be for them.
Submitted: 2 years ago.
Category: Bankruptcy Law
Expert:  Alex J. replied 2 years ago.
Hi<
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Was this done after an Administrator was appointed?
Kind regards
AJ
Customer: replied 2 years ago.
Hi Alex.
No. This company operated 129 units across the uk, one of which was supposed to become a head office. This never happened, but a lot of material was still sent there.
Without notice this particular unit was shut down and shortly thereafter they went into administration.
If i can help any further please ask.
Expert:  Alex J. replied 2 years ago.
Hi
Thank you.
Firstly if the directors have mis recording the company finances there are provisions under the Companies Act 2006 and Insolvency Act 1986 to hold directors personally liable for the company debts if they have misappropriated company funds or even traded the company knowing it is insolvent.
Secondly office holders of Companies can be held liable for Data Protection breaches. If you suspect a breach you have to complain to ico.org.uk/ - information commissioner and they will investigate any breaches.
I look forward to hearing from you.
Kind regards
AJ
Customer: replied 2 years ago.
Can i just clarify though, can they still be held accountable for that period even after being discharged as a directors?
Expert:  Alex J. replied 2 years ago.
Hi
Thank you.
They are accountable for the actions of the company whilst they were directors.
Technically the company is in administration, so they are still directors.
Ultimately the Information Commissioner may struggle to pierce the corporate veil and actually prove which director was responsible for the breach.
Kind regards
AJ
Customer: replied 2 years ago.
Sorry for the back and forth q n a. In a situation where that was true wouldnt they look to the CEO to be answerable?
This is quite a personal situation for me as this particular group of directors managed to get away with putting the same company in admin 4 times and then arranging a pre pack mbo. Each time they did this they wrote off millions in debt and got very rich in the process.
I was one of the creditors in one of these situations and lost my company through this.
Its ironic i now own the derelict site where i have found this information and wish to put it to best use.
Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
Ultimately all this complaint will do is lead the Information Commissioner investigate and possibly sanction them.
Do you know who dumped the information was it someone instructed by the directors?
Kind regards
AJ
Customer: replied 2 years ago.
As a company at that particular moment they were panicking and started moving multiple sites info and resources back to this dissused head office.
But then they shut this site also without warning. There were only 3/4 directors at the time (inc CEO)
Expert:  Alex J. replied 2 years ago.
Hi
Thank you.
All you can do is make the complaint to the Information Commissioner.
If the administrator is prepared to pursue the directors personally then you can assist the administrator, do you actually have a claim in the administration?
Kind regards
AJ
Customer: replied 2 years ago.
No claim. He denied he agreed to the work (despite written confirmation from another director saying he had agreed to it). In the meantime their refusal to pay the invoice lead to the collapse of my company as we had overstretched ourselves to complete their work.
I suppose what it boils down to is this.
If i take this information the commissioner, is this bloke gonna have a headache to deal with? Yes i suppose i am looking for some vengeance. Im not personally bothered about the outcome as long as he is inconvenienced by it as much as i was laying off loyal staff and loosing my home and business.
Expert:  Alex J. replied 2 years ago.
Hi<
Thank you.
Of course it would cause a headache, they would have to co operate with any investigation as you have some damning evidence and there is potential fines and criminal prosecution.
Kind regards
AJ
Alex J. and other Bankruptcy Law Specialists are ready to help you
Customer: replied 2 years ago.
Thank you for your time today Alex.
Expert:  Alex J. replied 2 years ago.
No problem.
I wish you the best of luck.
Kind regards
AJ
Customer: replied 2 years ago.

Hi Alex


 


i would like to thank you for your time by offering some paid work.


 


i have a long term lease agreement that needs proofing and would like to add a side letter to it for some outstanding issues, is this within your area of expertise? if so i'll happily offer you this work for an agreed price.


 


the only downside is timescale, would ideally like it done within 48 hrs or sooner.


 


please let me know either way.


 


best regards


 


Tony

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