Wednesday 15:37
The directors of a road freight transport business that failed with total debts estimated at around £111,000 have given Undertakings not to hold directorships or take any part in company management for 3 years each.
The Undertakings by Leo Donald Kirkman, 70, of Mid-Lincombe Road, Torquay Devon TQ1 and Graham Garrod, 52, of Springfield Road, Gatley, Cheadle SK8 were given in respect of their conduct as directors of Express European Logistics Limited which carried out business from premises at 16 Hunstanton Close, Colnbrook, Slough SL3.
Acceptance of the Undertakings on 2 September prevents Mr Kirkman and Mr Garrod 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.
Express European Logistics Limited was placed into liquidation on 5 December 2001 with estimated debts of £111,688 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.
The matters of unfit conduct, not disputed by Mr Kirkman and Mr Garrod were that they:
1.Caused or allowed Express to make a payment of £14,079 to Boom Transport on 21 July 2001, in respect of the outstanding liability of Safeair International Global Logistics Limited the predecessor company of Express. This payment was to the detriment of Express and its creditors. 2.Caused or allowed Express to make payments totalling £25,200 to Paul David Garrod and Paul Anthony Connolly, and their respective partners, between 15 August 2001 and 26 September 2001, i.e. within five to nine weeks of the winding up petition presented against Express by Boom Transport. These payments were to the detriment of Express and its creditors.
NOTES TO EDITORS
1. The Insolvency Service is an executive agency of the Department of Trade and Industry with responsibility 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 voluntary 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).
For further information about the Insolvency Service and disqualification see http://www.insolvency.gov.uk
Issued on behalf of the Insolvency Service by Government News Network South West. For more information please contact Terri Gough on tel: 0117 900 3563 or email: terri.gough@gnn.gsi.gov.uk
Regional news releases for Government departments can be viewed at http://www.gnn.gov.uk
The Insolvency Service is an executive agency of The Department of Trade and Industry
