Talks continue with trustees of failed charity

Blog Insolvency

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Alan Yentob could be handed a five year ban from holding directorships following the high-profile collapse of the children’s charity Kids Company, it has been suggested.

It was reported last week that Mr Yentob, perhaps best known for his long career at the BBC, and fellow former trustees had been given a deadline of 20 December to agree voluntary bans.

Kids Company had collapsed amid considerable controversy in July 2015, shortly after it had received a £3million cash injection from the Government.

Its failure prompted allegations of financial mismanagement and poor governance, with the Charity Commission having tightened up its procedures in the wake of the organisation’s demise.

In recent months, the Insolvency Service has been locked in talks with Kids Company’s former trustees about the best way forward.

Sky News has suggested that unless parties can come to some form of agreement before the deadline next week, then the regulator is likely to initiate formal disqualification proceedings.

The Insolvency Service hopes that a voluntary ban can be agreed on the basis that the length of time would be less than if the process continued through the courts.

Neither the regulator nor the lawyers acting for the former trustees have commented at this stage.