Two directors from Macclesfield were banned from acting as company Directors for six years following an Insolvency Service Investigation.
They both gave undertakings to the Secretary of State for Business, Innovation and Skills which prevents them from acting as company directors from 29 June 2016 to 28 June 2022. Mr Connor and Mrs Connor became directors of E Connor of Cheshire Limited in May 2011 and the company went into Creditors Voluntary Liquidation on 28 August 2014 owing creditors nearly £255,000.
In giving their undertakings, Mr Connor and Mrs Connor did not dispute that from 27 February 2014 to the date of liquidation on 28 August 2013, they failed to maintain and/or preserve adequate accounting records or deliver up to the Liquidator such records as were maintained.
As a consequence, it has not been possible to explain the whole of the company’s expenditure and establish that all expenditure related to genuine company expenses. During the period, debits from the bank account totalled £483, 486 of which £103,000 relating to transfers made to a connected bank accounts could not be explained from the records delivered up.
Commenting on these disqualifications, Martin Gitner, Deputy Head of Investigation and Enforcement Services at the Insolvency Service said:
"Directors who operate businesses have to maintain sufficient records to explain how monies have been expended and following insolvency, make sure that such records are delivered up for scrutiny by the relevant bodies. By failing to do this the public can not be sure that all funds received by the company were used for legitimate purposes."
"The Insolvency Service will take action against directors who do not take their obligations seriously and abuse their position of trust."
Notes to editors
- Mr Edwin Connor’s date of birth is 22 February 1948 and he is from Macclesfield.
- Mrs Elisa Maria Connor’s date of birth is 26 June 1962 and she is of Macclesfield.
- E Connor of Cheshire Limited. Incorporation Date 11 May 2011
- E Connor of Cheshire Limited traded from New Crescent Works, Queens Avenue, Macclesfield, SK10 2BN
A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:
act as a director of a company
take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
be a receiver of a company’s property
In addition that person cannot act as an insolvency practitioner and there are many other restrictions are placed on disqualified directors by other regulations.
Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Further information on director disqualifications and restrictions can be found here.
The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency authorises and regulates the insolvency profession, deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.
Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.
Contact Press Office
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Source: Gov.uk (Contains public sector information licensed under the Open Government Licence v3.0.)