Friday 10:52
The directors of a software consultancy and supplier that failed with debts estimated at around £230,000 have given Undertakings not to hold directorships or take any part in company management for a total of seven years.
James Arthur Matthewson, aged 35, and Melanie Wrightson (also known as Melanie Matthewson) both of Somers Road, Reigate, Surrey and David Collier aged 33 of Gipsy Road, Welling, Kent were directors of Shrinking Earth Limited, which traded from 1A Church Street, Reigate, Surrey RH2 0AA.
Mr Collier's acceptance the Undertaking on 9 November 2004 prevents him from being a company director or, in any way, whether directly or indirectly, being concerned or taking part in the promotion, formation or management of a company for two years. Mr Matthewson's acceptance of the Undertakings on 17 December 2004 prevents him from being a company director or, in any way, whether directly or indirectly, being concerned or taking part in the promotion, formation or management of a company for three years and Ms Wrightson for two.
Shrinking Earth Limited was placed into creditors' voluntary liquidation on 11 November 2002 with estimated debts of £230,607.
The Insolvency Service, on behalf of the Secretary of State for Trade & Industry, has responsibility (under Section (6) of the Company Directors Disqualification Act 1986) for the investigation of the conduct of directors of failed companies and for the disqualification of those who are considered to be unfit to be involved in the management of companies in the future.
Matters of unfit conduct, not disputed were that the directors of Shrinking Earth Ltd were that they:
* continued to trade after the annual accounts showed the company was insolvent to the detriment of its creditors; * made inadequate payments to Inland Revenue for PAYE / NIC and HM Customs & Excise for VAT.
Notes to editors
1. The Insolvency Service responsible for both the regulation of Insolvency Practitioners and for company directors' disqualifications.
2. Insolvency Practitioners are authorised to deal with the administration of a range of company insolvency procedures including administrations and administrative receivership and creditors' voluntary liquidation. Insolvency Practitioners are required to report to the Insolvency Service on the conduct of company directors' work in each of these proceedings with a view to identifying behaviour that might make these directors unfit to be involved in company management in the future.
3. The Insolvency Service considers the insolvency practitioners reports and, where appropriate, will investigate the conduct of directors with a view to taking disqualification proceedings on behalf of the Secretary of State.
4. A court can disqualify directors from directorships and involvement in the management of companies for between two and 15 years for unfit conduct. If a director breaches a Disqualification Order they can be prosecuted and may be punished by a fine, a prison sentence of up to two years, or both, and may be made personally liable for the company debts.
5. Directors who accept that their conduct is unfit can give an Undertaking to the Secretary of State that they will not become involved as a director or in the management of a limited company for an agreed period of between two and 15 years. This avoids a court process, but the penalties for breach of an Undertaking are the same as for breach of a court order.
6. Companies House maintains a public register of disqualified directors that can be viewed at http://www.companieshouse.gov.uk. Addresses given are those correct at the time of the company failure, but may not now be current.
7. Members of the public who think that they know of any person who is acting in breach of a Disqualification Order or Undertaking should report that person's details to The Insolvency Service Enforcement Hotline on 0845 601 3546 (24 hour message service). General enquires to The Insolvency Service should be addressed to the General Enquiries Help line on (020 7291 6895).
For further information about the Insolvency Service and disqualification see http://www.insolvency.gov.uk
Regional news releases for Government departments can be viewed at http://www.gnn.gov.uk
An Executive Agency within the DTI
Client ref INSS/14/12
