{"id":180,"date":"2021-06-24T11:48:04","date_gmt":"2021-06-24T11:48:04","guid":{"rendered":"https:\/\/imqra.com\/?p=180"},"modified":"2021-06-24T11:48:06","modified_gmt":"2021-06-24T11:48:06","slug":"is-there-adequate-scrutiny-of-the-running-of-mq-and-its-structures","status":"publish","type":"post","link":"https:\/\/imqra.com\/?p=180","title":{"rendered":"Is there adequate scrutiny of the running of MQ and its structures?"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>\n<p>At MQ A-G one person, Stephen Lang, is in effect Chair, Treasurer, and Board Secretary of the company.&nbsp;&nbsp;As a consequence MQ A-G lacks the normal checks and balances resulting from&nbsp;<span style=\"text-decoration: underline\">different people<\/span> holding different positions, which help prevent cronyism, backhanders and untoward activity.&nbsp;&nbsp;<\/p>\n\n\n\n<p>A similar lack of checks and balances can be seen elsewhere in organisations involved in running Millennium Quay.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The situation is similar in the MQ Freehold company where Mr Lang also performs multiple roles<\/li><li>Mr Lang has forcefully opposed the creation of Treasurer and Board Secretary roles<\/li><li>MQRA has a similar lack of role division with Mr Heaton undertaking multiple roles<\/li><li>Mr Lang is a director of MQRA and used to be its vice-chair<\/li><li>Mr Lang\u2019s partner, Adam Ayles worked for and was remunerated by MQS (MQ\u2019s contractor) for\u00a0about 12 years and until c2016 co-owned MQS with Mr Coleman and was its company secretary.<ul><li>Mr Lang\u2019s original 2005 declaration of interest in MQS was at best partial and arguably misleading.\u00a0\u00a0He subsequently failed to declare his interest when company law required this, for example to the board on 4\/6\/14 when a \u00a310k increase was awarded to MQS.\u00a0\u00a0The interest was first declared in the 2014 accounts.\u00a0<\/li><\/ul><ul><li>In spite of repeated requests and the requirements of company law, Mr Lang has not disclosed the level of remuneration his partner received from MQS.<\/li><\/ul><ul><li>The estimated total annual value of contracts to MQS from MQ companies in 2015 was \u00a3150k+.\u00a0\u00a0None have been tendered.<\/li><\/ul><\/li><\/ul>\n\n\n\n<p><strong>Associated companies breach regulations<\/strong><br>Issues with companies associated with key people running MQ do not provide re-assurance. Mr Lang and his partner Mr Ayles who co-owned MQS, were Directors and co-owners of&nbsp;<a href=\"https:\/\/find-and-update.company-information.service.gov.uk\/company\/07476604\">Grasshopper Media Limited<\/a> (GML). GML was incorporated in 2010, with Mr Lang being a director until the end of 2017.&nbsp;GML is an on-demand programme service provider in an industry regulated by ATVOD \/ Ofcom.&nbsp;&nbsp;The regulator found GML to be in breach of its rules when it investigated it on 2\/12\/14 and then again on 10 &amp; 24 February 2015 when further checking its post notification compliance. Therefore, it appears that MQA-G\u2019s Chairman and de facto Treasurer and Board Secretary was also the director of a company operating in a regulated industry which breached its regulations, raising a question as to whether or not Mr Lang fulfilled his legal obligations as a director with regards to GML.&nbsp;&nbsp;Anyone wishing to check details can do so at:&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.ofcom.org.uk\/__data\/assets\/pdf_file\/0025\/156643\/grasshopper-media.pdf\">Letter<\/a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.ofcom.org.uk\/__data\/assets\/pdf_file\/0030\/156648\/grasshopper-annex-a.pdf\">Breach of Rule 11&nbsp;(Harmful Material: protection of under-18\u2019s)<\/a>&nbsp;&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.ofcom.org.uk\/__data\/assets\/pdf_file\/0031\/156649\/grasshopper-annex-b.pdf\">Breach of Rule 1(\u2026notify a service)&nbsp;&nbsp;&amp; Rule 4&nbsp;(\u2026 pay a fee)<\/a><\/p>\n\n\n\n<p>Mr Coleman, now the sole owner of MQS, was also the sole Director and 99.9% shareholder of&nbsp;<a href=\"https:\/\/find-and-update.company-information.service.gov.uk\/company\/02627280\" target=\"_blank\" rel=\"noreferrer noopener\">Ability Plus Software (UK) Ltd<\/a>. Companies House&nbsp;<a href=\"https:\/\/find-and-update.company-information.service.gov.uk\/company\/02627280\/filing-history\">records<\/a> indicate that in December 2010 it had Long term finance of \u00a32.2m, Profit and Loss of \u00a31.5m (negative) and was dissolved a couple of year\u2019s later via compulsory strike off.&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p>Furthermore, in 2019 MQS itself was fined \u00a35,000 by Greenwich Trading Standards as&nbsp;<em>\u201cThe company had failed to be a member of a Redress Scheme. This was after receiving advise in writing and in person\u201d&nbsp;<\/em><\/p>\n\n\n\n<p><strong>Little or no scrutiny at MQ<\/strong><br>In the \u201cFor Profit\u201d sector the above would come to light in any scrutiny undertaken by potential investors or lenders.&nbsp;&nbsp;Likewise, in the \u201cNot For Profit\u201d sector by a funder.&nbsp;In either case, alarm bells would ring and its unlikely finance would be forthcoming while conflicting interests and the lack of role division continues.&nbsp;&nbsp;MQ A-G falls between these stools.&nbsp;&nbsp;It is a monopoly, financed by compulsory service charges. The only scrutiny undertaken is by individual owners to help determine how they vote for board directors.&nbsp;It is unlikely that many leaseholders have the capacity to undertake this in depth.<\/p>\n\n\n\n<p>Should MQ\u2019s lack of role division, combined with conflicting interests and a failure to adhere to industry regulations by key people at MQ be of concern to&nbsp;property owners?&nbsp;&nbsp;&nbsp;Should it affect how they vote at AGMs?&nbsp;<\/p>\n\n\n\n<p><em>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<\/em>:<a>admin@imqra.com<\/a>&nbsp;&nbsp;<em>Likewise if there are issues you would like to raise.<\/em><\/p>\n\n\n\n<p><em>Note: views in this blog and on this site are the honest opinion of the author &amp; are made available in the interest of residents at MQ.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>At MQ A-G one person, Stephen Lang, is in effect Chair, Treasurer, and Board Secretary of the company.&nbsp;&nbsp;As a consequence MQ A-G lacks the normal checks and balances resulting from&nbsp;different &hellip; <a href=\"https:\/\/imqra.com\/?p=180\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,17,16],"tags":[],"class_list":["post-180","post","type-post","status-publish","format-standard","hentry","category-corporate-governance","category-governance","category-mq-a-g","entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Is there adequate scrutiny of the running of MQ and its structures? - IMQRA<\/title>\n<meta name=\"description\" content=\"Should MQ\u2019s lack of role division, combined with conflicting interests and a failure to adhere to industry regulations by key people at MQ be of concern to property owners? 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