The Solicitors Regulation Authority (SRA) have intervened on Follett Stock LLP after the High Court granted a winding up order against the firm. The SRA, which regulates solicitors in England and Wales, had noted a declaration that Follett Stock LLP and its holding company Follett Stock Holdings Company were insolvent. Reports have stated that this development comes after Follett Stock’s LLP was liquidated at a High Court hearing last week.
HMRC’s Winding Up Petition
The firm was originally served with a winding up petition by HM Revenue and Custom (HMRC) in August and was given until 30 September to settle the outstanding bill. We reported last month, that HMRC’s winding up petition against Follett Stock LLP had been adjourned to allow the firm time to pay the outstanding tax bill. The firm changed its directors from Christoper Lingard and Marin Pearse to Lingard’s wife, Fiona Higgins, in an attempt to secure financial stability.
Intervention by the SRA
Unable to pay its outstanding tax bill, we understand that the winding up petition hearing took place earlier this month at the High Court which resulted in a winding up order being granted against the firm. It has also been reported that the SRA stepped in two days after the winding up order taking control of all documents including client papers and all monies held by the firm.
KPMG have been appointed as compulsory liquidators for the firm effectively to wind down its financial affairs. KMPG are in control of the firm, but are clearly unable to deal with ongoing cases and will need to cooperate with the SRA. Director of Client Protection at the SRA, Helen Herniman stated:
“In cases like these where the firm has become insolvent, we only intervene once all other options have been exhausted. We have had to intervene on this occasion as there was a clear risk to clients’ interests caused by the firm’s financial difficulties.”
HMRC Winding Up Petition Legal Advice
If you have received a winding up petition brought by HMRC our legal experts are able to provide legal advice and representation. Our team of solicitors and barristers can obtain a court adjournment, CVA’s or reach an out of court settlement to ensure that a winding up order is avoided.