Principal faces court threat for late results
Principal Distribution could face criminal proceedings and thousands of pounds worth of fines after failing to file its accounts at Companies House.
The distributor's results for the year ended 31 May 1997 were due to be filed on 4 October of that year, but a representative at Companies House revealed that the North Yorkshire company's financials were 13 months late.
He stated last week that 'action will be taken soon and a letter will be going out which will give the company four weeks to file the results'.
The representative added that because Principal Distribution was registered in Scotland, the matter would then be passed on to the Proculator Fiscal, the Scottish magistrate, to decide whether the case would go to court.
'It is a criminal offence not to file company accounts,' he said.
However, Rod McMillan, chairman of Principal, stated that the company would be filing its accounts at the end of this month and reiterated his previous intention to register both 1997 and 1998 results at the same time (PC Dealer, 29 July).
But the Companies House representative said: 'Even if the results are filed now, the Proculator Fiscal could still decide to prosecute as it is a late logging and the company could be fined for up to #5,000 per document.'
McMillan claimed Principal had been on touch with Companies House regarding its intentions. He said: 'There is a monthly reporting penalty which we are aware of and are comfortable with.' McMillan added: 'We are not concerned by the penalties.'
According to Companies House, the distributor had already incurred a #1,000 fine in October, after extending the date on which its accounts were due by five months from 31 December 1996, following its incorporation on 4 December 1995.
McMillan added: 'The important thing is that our suppliers are aware of the financial and reporting situation.'