From this story,I actually noticed there was a big gap between the employers and the employees,lack of team spirit among them resulted to this mess.Read further and comment on what you think went wrong?
Companies House wrongly said that engineering firm Taylor & Sons Ltd had been wound up - when in fact it was an unrelated company called Taylor & Son Ltd.
As false rumours spread that the business was in trouble, customers cancelled their orders and credit facilities were withdrawn, leaving the 134-year-old firm unable to keep trading.
Now a High Court judge has ruled that Companies House is liable for the firm's default, and must pay as much as £8.8million in compensation to its owner Philip Davison-Sebry
When Taylor & Son went out of business in February 2009, Companies House document examiner Philip Davies wrongly amended the companies register to say that it was Taylor & Sons which had ceased trading, the court heard.
Collapse: Owner Philip Davison-Sebry, pictured, started to receive angry phone calls from clients
+4 Collapse: Owner Philip Davison-Sebry, pictured, started to receive angry phone calls from clients
The blunder was corrected three days later - but word had already begun to spread that Taylor & Sons, based in Cardiff, was in financial trouble.
Mr Davison-Sebry, 57, was on holiday at the time, and began to receive angry phone calls from clients asking why he had fled the country when his company was in liquidation.
His lawyer Clive Freedman QC told the court that the firm's best customer, Tata Steel, quickly withdrew its £400,000-a-month business.
And contracts to construct three Royal National Lifeboat Institution stations collapsed at a cost to Taylor & Sons of £3million.
'The business of the company was, effectively, irreparably destroyed,' he told the court. 'The business was damaged so as to become of no real value.'
Mr Justice Edis ruled this week that Companies House was responsible for the the business, which was founded in 1875, entering administration two months after the mistake.
He concluded: 'The reason why the Company went into administration in April 2009 was the error made by Mr Philip Davies.'
The judge pointed to the fact that this is the only comparable blunder ever recorded on the companies register, saying: 'That can only be because it was easy to avoid.'
Taylor & Sons, Mr Justice Edis added, had 'no way of protecting itself' against the error and its catastrophic consequences.
The damage to the company was foreseeable and there had been an 'assumption of responsibility' by Companies House, he said.
In handing victory to Mr Davison-Sebry, the judge said it was 'fair, just and reasonable' to hold Companies House liable for what happened.
He said that while Taylor & Sons had run into difficulties during the recession, the mistake by Mr Davies - who has 33 years of experience in the field - was the 'precipitating factor' in its eventual collapse.
The amount of damages payable by the State-owned body has yet to be determined, but Mr Davis-Sebry valued his claim at £8.8million.
Companies House said in a statement today: 'Companies House has recently received the judgement in this case and is currently considering the implications at this time. Until these considerations are complete we remain unable to comment further.'
A spokesman refused to say whether or not any employees had been disciplined over the expensive error.
So even when you think you are the best,you still someone to go through what you have done.
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