Lawrence Kenwright, founder of the collapsed Signature Group of property companies, has been disqualified from acting as a company director for five years following an investigation by the Insolvency Service.
The 60-year-old, who established nearly 100 companies including hotels with football themes such as the Shankly and Dixie Dean, was banned after investors lost more than £4.8 million through misleading marketing material distributed by Signature Works Gold Limited.
False marketing claims
The company, which sold desk space to investors in three Liverpool city centre properties, distributed promotional material that stated or implied investors would gain a legal interest registered at Land Registry in the properties. However, investigators found that Signature Works Gold Limited did not own any registered freehold or leasehold interest in any of the three properties.
The Insolvency Service determined that Kenwright had “failed to ensure adequate stewardship and corporate governance” of the company. When Signature Works Gold Limited was wound up, it had assets of less than £100,000 against liabilities of £4,848,654.
Kevin Read, Chief Investigator at The Insolvency Service, said: “Lawrence Kenwright’s failures as a company director had serious consequences for investors, who suffered losses of more than £4.8 million as a result of false and misleading marketing material.”
Read added: “While Kenwright is not accused of direct fraud, his conduct nevertheless falls well below the standards we expect of company directors. Directors have a responsibility to ensure investment information issued in their company’s name is accurate and can be relied upon.”
Implications for property investors
The case highlights the risks associated with property investment schemes, particularly those involving fractional ownership or desk space investments. The disqualification serves as a reminder for investors to conduct thorough due diligence, including verification of ownership structures and Land Registry records before committing funds.
The ban, which commenced on 18 August, prevents Kenwright from being involved in the promotion, formation or management of a company without court permission. Similar regulatory actions have been increasing as authorities seek to protect investors in property-related schemes, with modern method auction sales rising 14.5% year-on-year, highlighting the growing complexity of property transactions.
Kenwright, of Sankey Road, Maghull, signed a disqualification undertaking days before he was due to appear for trial. The Insolvency Service has stated it will continue to take action against directors who fail in their responsibilities to maintain confidence in the UK’s business environment, a concern particularly relevant as property investors face increasing regulatory complexity.
