Andrea Manson has stepped down as convener of Shetland Islands Council (SIC) – two weeks after it emerged, she had been disqualified as a company director over unpaid tax.
With a majority of councillors understood to have indicated their support for the motion, it appears this would have ultimately been voted through.
Sources close to the situation say councillors did not wish to go down the route of a motion but had reluctantly felt there was no other option after Manson publicly stated her desire to stay on.
The Shetland North Councillor has now confirmed that she intends to step down as convener – just two days after telling local BBC radio that she planned to “fight on” and “clear her name”.
Manson didn’t dispute misconduct
A spokesperson for the UK Insolvency Service said Manson has not disputed the misconduct, “and any reporting that suggests otherwise would be factually inaccurate”.
The Shetland North Councillor stated on Tuesday that she would “fight on” in the convener role despite recently being disqualified from holding company directorship over unpaid tax.
Manson said she wanted the chance to tell councillors her side of the story, rather than the “headline news”, and “clear her name”.
Resignation after all
Manson, 67, who has been convener since 2022, said the strain of the situation was having a “serious effect” on her health – adding that she will be happy being a “back bencher” for a change.
“The council, and Shetland, needs to focus on the forthcoming election and the important things for the islands and my current situation is just muddying the waters,” she told Shetland News.
It comes as the UK Insolvency Service has reiterated that Manson did not contest her recent disqualification as a company director over Mid Brae Inn Ltd.’s unpaid tax.
Manson opted to give a disqualification undertaking, which is a legally binding voluntary agreement under the Company Directors Disqualification Act 1986 where a director agrees to ban themselves.
U-turn
This appeared to have been a U-turn from Manson, who said she had previously been ready to “fall on my sword” and resign before changing her mind after receiving public support.
But with a majority of councillors now believing Manson should step down, the Shetland North member has decided to resign from her convener role.
Shetland Central member Ian Scott became the first councillor to publicly say he believed Manson should step down in the wake of her ban from company directorship late last month.
He said he had “every sympathy” for Manson but said “for the reputation both of the council and for Andrea herself, I think she has to consider a step back.”
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Outstanding tax payments
Manson was disqualified from acting as a director for three and a half years following the 2023 liquidation of Mid Brae Inn Ltd, which owed more than £170,000 in tax.
Councillors met in private following the news two weeks ago and decided to allow Manson time to come to the same conclusion rather than calling publicly for her resignation.
It is understood a notice of motion was submitted to SIC’s committee services on Tuesday, and it was set to go in front of elected members at the next meeting of the full council on 25 March.
Disqualification report released after radio interview
Meanwhile, the release of Councillor Manson’s signed disqualification undertaking follows her recent interview on local radio in which she said she wanted to clear her name.
The Shetland North Councillor was banned from being a company director for three and half years following the 2023 liquidation of Mid Brae Inn Ltd, owing the taxman “at least” £178,860.
Manson’s co-director at Mid Brae Inn Limited, Catherine Diane Davies, was also disqualified as a company director for three and a half years, with her ban coming into effect in November 2025.
A victim of Covid?
Manson has claimed the business was a victim of the Covid pandemic, but a breakdown of tax liabilities show that the Mid Brae Inn had outstanding PAYE/NIC liabilities of £7,320.68 for 2018/19 and £8,243 for 2019/20, both dates before the Covid lockdown.
When Mid Brae Inn went into liquidation on 24 May 2023, the company had liabilities of at least £221,296, “of which at least £178,860 is due to HMRC”.
The document also explains how between 7 June 2019 and the date of liquidation, a total of £847,264 was received into the company’s bank account, and that “payment totalled £841,216 were made, with only £6,000 of this paid to HMRC”.
The Insolvency Service added that all directors alleged to have committed misconduct have the opportunity to defend their case in court if they wish to do so.
Self-imposed ban
Manson opted to give a disqualification undertaking, which is a legally binding voluntary agreement under the Company Directors Disqualification Act 1986 where a director agrees to ban themselves.
This avoids court action by the Insolvency Service and usually reduces the penalty period.
The legal document was signed on 30 January 2026, but it noted that information was provided to Manson on the scope and effect of the disqualification undertaking in a notice dated 7 October 2025.
Manson became the SIC’s first female convener when she was elected by her peers in May 2022.
Convener’s role
The convener role is the civic head of Shetland Islands Council, and it involves representing Shetland at home and away.
Other elements include recognising significant anniversaries and the achievements of local citizens and organisations. The convener also presides over meetings of the full council.
In recent years some of the more public-facing jobs for the convener has included opening the Tall Ships Races in Lerwick in 2023 and delivering speeches at the Up Helly Aa civic reception.
But there have been some more sombre moments, such as marking the 80th anniversary of D-Day and reading the proclamation of King Charles III’s accession to the throne – on the steps of the Town Hall – following the death of Queen Elizabeth II.
Manson’s time as convener
Manson replaced long-standing convener Malcolm Bell when she was given the role in 2022.
It is the second highest paid role when it comes to local democracy in Shetland, behind the leader role.
Last year nationally mandated changes to councillors’ pay saw the convener role’s salary rise by more than one third to more than £37,000.
Manson’s resignation comes just over one year before the next round of local government elections in 2027.
She has had two stints as a councillor – first in the 1980s and early 1990s before returning to the chamber in 2012, where she has remained since.
A version of this article was first published on 11 March by Chris Cope & Hans Marter from Shetland News.
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