Possible untoward activity at MQ?
Over the years some leaseholders have wondered if there are grounds for suspecting there has been untoward activity at MQ.
Failure to disclose an interest
On 4/6/14 the boards of MQA-G and MQRA met to discuss a £10k increase to the fee paid to MQS. At the time Stephen Lang’s partner, Adam Ayles, co-owned MQS (50% shareholder), was a Director and Company Secretary at MQS and received a salary from MQS. Sections 177 & 182 of the 2006 Companies Act requires a director to declare an interest of this nature at any meeting where this is relevant to the agenda. S183 specifies that failing to do so constitutes an offence. There is a similar requirement in the company’s Articles of Association.
During the course of the meeting Mr Lang argued that the increase in the fee was needed due to the increase in MQS’s costs paid to their staff and sub-contractors for the work undertaken on insurance claims. When asked who these staff and sub-contractors were Mr Lang said he did not know. At no time during the meeting did Mr Lang declare an interest in MQS. However, later in the year, following questions from the auditor Mr Lang acknowledged his indirect interest in MQS.
Are there grounds for suspecting fraud at MQ?
Anyone wishing to examine this question should look at the very short and readable 2006 Fraud Act. This indicates that fraud involves both:
a) One of:
· False representation
· Failing to disclose information which should have been disclosed
· Abuse of position
Combined with the intention of
b) Someone making a gain or someone suffering a loss.
For there to be grounds for suspecting fraud one has to judge if a) information was not disclosed that should have been and b) someone gained from the increased payments for example Joel Coleman and / or Mr Lang’s partner (at that time both directors and co-owners of MQS) and c) Mr Lang knew this and intended it to happen.
If you are concerned about issues raised in this item and want to try to change things, or wish to express your support to those organising the site then contact : independentmqra@gmail.com
Likewise if there are issues you would like to raise.
Note: Views in this blog and on this site are the honest opinion of the author & are made available in the interest of residents at MQ.