Friday 13:49
The director of four vehicle maintenance and repair businesses that failed with total debts estimated at around £447,000 has given an Undertaking not to hold directorships or take any part in company management for ten years.
The Undertaking by Graham Minto Boyd, age 40 of Highfields, Caldicote, Cambridgeshire was given in respect of his conduct as a director of Cambourne Autopoint Ltd, Frontline Rescue Services Ltd, Frontline Rescue Autopoint Ltd and Highway Assets Ltd t/a Frontline Rescue, which carried out business from premises at The Drift, Bourne, Cambridge, CB3 7TE.
Acceptance of the Undertaking on 22 December 2004 prevents Mr Boyd from being a director of a company, or in any way being concerned or taking part in the promotion, formation or management of a company for the above period.
Cambourne Autopoint Ltd was placed into voluntary liquidation on 15 November 2002 with estimated debts of £74,000 owed to creditors. Frontline Services Ltd was placed into administrative receivership on 12 March 2003 with estimated debts of £71,000 owed to creditors. Frontline Autopoint Ltd was placed into administrative receivership on 12 March 2003 with estimated debts of £75,000 owed to creditors. Highway Assets Ltd was placed into administrative receivership on 12 March 2003 with estimated debts of £225,000 owed to creditors.
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 by Mr Boyd:
* he caused Cambourne Autopoint Ltd to continue trade from April 2001 at the risk and to the detriment of crown and creditors, having regard to the fact that:- - Cambourne failed to meet its liabilities when due to Inland Revenue in respect of PAYE/NIC; - Cambourne failed to make any payments to Inland Revenue for the 2000/2001 tax until October 2001 and none after January 2002; - Cambourne failed to meet its liabilities to H M Customs & Excise, some of which still remained outstanding at liquidation and distress warrants were issued on 4 occasions for the total sum of £49,548; - Cambourne failed to pay its trade creditors as and when due from at least February 2001 with the result that Cambourne was placed into liquidation with a deficiency to creditors of £74,815; - he failed to ensure that Cambourne maintained, preserved or failed to deliver up to the liquidator adequate accounting records to fully explain all of its transactions.
* he caused both Frontline Services and Frontline Autopoint to trade at the risk and to the detriment of creditors from commencement of trading, having regard to the fact that:- - it commenced trading shortly before the liquidation of Cambourne in the same line of business and from the same premises and was balance sheet insolvent and loss making for its entire period of trading; - it failed to make any payments to Inland Revenue and H M Customs & Excise; - he failed to ensure that Frontline Services maintained adequate accounting records to fully explain all of its transactions.
* he failed to submit a completed and sworn Statement of Affairs;
* he caused Highway Assets Ltd to trade at the risk and to the detriment of creditors from commencement of trading.
* he failed to ensure that Highway Assets Ltd maintained adequate accounting records to fully explain all of its transactions.
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 Disqualified Directors 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).
Regional news releases for Government departments can be viewed at http://www.gnn.gov.uk
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