# 'Charity' publishing companies closed in the public interest

- Link: https://fundraising.co.uk/2007/03/15/039charity039-publishing-companies-closed-public-interest/
- Published: 2007-03-15T00:00:00+00:00
- Author: Howard Lake

Two ‘charity publishers’ have been wound up in the public interest by the High Court
in Manchester following an investigation by Companies Investigation Branch of the
Insolvency Service. The companies misled those whom them sold advertising to in 
terms of the amount being donated to charity.

Lancashire-based Hamilton Forbes Limited and Price Chamberlain Limited were set
up to continue the business of charity publisher Barrington House Publishing Corporation
Limited, which itself was wound up in October 2005.

Investigators found that both Hamilton Forbes and Price Chamberlain sold advertising
space in wall-planners to small businesses who were contacted by cold-calling, by
many of the same staff, from the same premises, using the same methods and for the
same charities as

## Advertisement

Barrington House.

Initially the companies failed to comply with Section 60 of the Charities Act 1992
and inform advertisers of the proportion of their fees which would be given to charity.
Even though they latterly sent out statements, these were inaccurate, according 
to investigators.

Advertisers were told that 15p in every pound would be given by Hamilton Forbes 
Limited to The Children’s Research Fund and 10p in every pound to the International
League for Protection of Horses. In fact, less than 5p in every pound went to these
charities.

Advertisers with Price Chamberlain Limited were told 25p in every pound would go
to the charity Kids in Need and Distress (KIND) but in reality it was 8p.

The Insolvency Service found that advertisers were also misled as to the planned
distribution of the wall-planners with telesales staff stating figures ranging from
100’s to 100,000 or “all hospitals”. In reality investigators found that the maximum
distribution for any one wall planner was just 87 with the average closer to 67.

The accounting records of both companies were “at best inaccurate and at worst misleading”,
according to the Insolvency Service. Both companies appeared to be insolvent owing
VAT and PAYE of over £250,000.

The Official Receiver was appointed as provisional liquidator of each company on
29 January 2007 and the winding up orders were made on 13 March 2007.

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