Brown & Mason was one of 10 demolition contractors that colluded to rig their bids for contracts
Nicholas Brown appealed to be allowed to continue as a director of demolition contractor Brown & Mason Group but the High Court said no.
Brown & Mason was one of 10 demolition contractors collectively fined a total of nearly £60m in March 2023 by the Competition & Markets Authority (CMA) for illegally colluding to rig bids.
The CMA also secured the disqualification of four directors of firms, one of whom was Nicholas Brown, who was personally involved in two breaches of competition law affecting contracts for demolition services with a total value of over £30m – one relating to the Shell Building on London’s Southbank, and the other relating to the Lots Road Power Station in London. The CMA accepted an undertaking from Mr Brown in May 2023, whereby he agreed to a seven-year disqualification as a result of his admitted role in the collusion.
As part of the cartel agreements, so-called ‘compensation payments’ with a total value of £700,000 (excluding VAT) were paid to Brown & Mason by two competitors. Mr Brown admitted taking a “central role” in this conduct, including by instructing staff to collect the payments by issuing invoices relating to “fictional services and goods” that were not, in fact, ever supplied by Brown & Mason. Mr Brown also admitted that, as a shareholder in Brown & Mason, he stood to benefit personally from these payments, and that he understood at the time that his conduct was wrong.
In July 2023, Mr Brown applied to the High Court for permission to continue to act as a director and to be involved in the management of Brown & Mason Limited, and its holding company NRLB Limited, on the basis that the companies needed his continued services as a director.
Today, the High Court issued its judgment refusing his application. The court agreed with the CMA that, in view of the circumstances – including the nature and seriousness of Mr Brown’s behaviour – and the importance of director disqualification in the CMA’s enforcement toolkit, granting an exemption from Mr Brown’s disqualification would not be appropriate. The court concluded that granting leave in this case “would be an overly great intrusion into the public benefit of this disqualification”.
Juliette Enser, the CMA’s senior director of cartels, said: “Director disqualifications are a key tool for protecting the public – and making sure those at the top of the chain are held responsible if their companies breach competition law. Bid-rigging and other illegal, anticompetitive practices, mean that businesses and consumers can end up paying over the odds or receiving worse services.
“Personal consequences, such as director disqualification, are a powerful deterrent – something which the Court’s decision clearly recognises. By rejecting Mr Brown’s request, the court’s judgment has shown that protecting the public should not be undermined.”
The CMA explained that Mr Brown may remain in post at Brown & Mason Group Limited and NRLB Limited subject to strict conditions for a run-off period expiring on 28th July 2024 to enable transition at the companies. Thereafter, Mr Brown will not be permitted to act as a director or participate in the management of any company until 29th July 2030.
The other three directors who accepted their disqualifications were Michael Cantillon (former director of Cantillon), David Darsey (former director of Erith) and Paul Cluskey (director of Cantillon).
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