Press notice
DTI 296-02
A Bedfordshire couple who were directors of a livestock haulage company that failed with debts estimated at around £150,000 have given an undertaking not to hold a directorships or take any part in company management for four years each.
The undertakings by John Barrie Hebbs and Judith Connolly both of Whaddon Farm, Slapton, Leighton Buzzard were given in respect of their conduct as directors of Grooms Livestock Transport Limited which carried out business from their home address.
The acceptance of these undertakings on 9 December 2002 prevents the couple from being directors of a company or, in any way, whether directly or indirectly, being concerned or taking part in the promotion, formation or management of a company for the above period.
The company was placed into liquidation on 18 December 2000 with assets of £42,907 and liabilities of £195,319 and an estimated total deficiency of £152,512.
Matters of unfit conduct, not disputed by Mr Hebbs and Ms Connolly included: * From 01 February 1999 to cessation of trade in November 2000 they caused the debt due from the Company for PAYE, NIC, & VAT to increase by £56,881 from £45,607 to £102,488 in that period by retaining monies due to them. In the same period the liabilities due to trade & other creditors decreased by £62,813 from £103,800 to £40,987 and the amount due to the bank (secured by a charge on Mr Hebbs'' home) decreased by £62,813 from £85,319 to £46,256. * They failed to ensure that the Company submitted proper returns and remittances to Government Departments. Payments for PAYE and NIC should have been paid to the Inland Revenue on the 19th of the month following the month in which the deductions are made. However from 1998/99 the Company fell into arrears and thereafter the Inland Revenue continually pressed for payment, eventually issuing proceedings. Although the Company made lump sum payments on account arrears continued to accrue. The last payment was £7,200.00 on 15 September 2000. * They latterly failed to ensure that the Company settled its liability to H M Customs & Excise for VAT. * They failed to ensure that accounts for the year ended 31 January 2000 were filed with The Registrar of Companies.
NOTES TO EDITORS
1. The Insolvency Service is an executive agency of the Department of Trade and Industry. Official Receivers report unfit conduct as liquidators in winding ups by the court (compulsory liquidations). Insolvency practitioners report in voluntary liquidations, administrative receiverships and administrations.
2. The Insolvency Service considers the reports, investigates and applies for disqualification where appropriate.
3. A court can disqualify directors for between two and 15 years for unfit conduct. A breach of the disqualification can be punished by a fine, a prison sentence of up to two years (or both), and personal liability for the company''s debts.
4. Directors who accept that their conduct is unfit can give an Undertaking not to act as a director for an agreed period. This can avoid a court hearing but the consequences for breach are the same.
5. Addresses are those given at the time of company failure and may not be current.
6. Companies House maintains a register of disqualified directors which can be accessed by the public on: http://www.companieshouse.co.uk
7. Contraventions of a disqualification order should be reported to the Insolvency Service on its 24 hour ''hot line'' - 0845 6013546. For further information about the Insolvency Service go to: http://www.insolvency.gov.uk
Issued on behalf of the Insolvency Service by Government News Network East.
All regional press notices are accessible on: http://www.gnn.gov.uk/gnn/gnnregion.nsf
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The Insolvency Service is an executive agency of The Department of Trade and Industry
