Locks and Security News: your weekly locks and security industry newsletter
17th April 2024 Issue no. 701

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Key Edge directors banned

As reported in the Daily Mirror Key Edge directors Julian Lloyd Bennellick and Christopher Davison, both from Exeter, have been banned from being directors for six years each. Jeremy Darvill of Tiverton and James Savage of Cullomton, Devon, have been banned for five years each.

Chris Mayhew of Company Investigations for The Insolvency Service said:

"The disqualification periods secured in this case should offer the public reassurance. The Service will not tolerate dishonest or reckless directors.

We have strong enforcement powers and where we find serious failings, such as the misrepresentations made to induce investment in the Key Edge franchise, we will use those powers to remove the directors from the business environment, as these directors discovered."

Among the faults found at the company were:

Deliberate non-disclosure and misrepresentations made to prospective franchisees with exaggerated claims of non-existent national accounts;

the businesses were unsustainable and relied on fresh franchise fees for operating capital; the company did not deal with 50% of complaints from locksmith franchisees and 35% of complaints from plumbing franchisees;

the directors did not keep adequate company records; Key Edge Limited's credit card account was used for cash withdrawals and personal expenditure, in particular £38,145 by Julian Lloyd Bennellick.

6th October 2010