Door slammed shut on disqualified director

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Mark Hinchliffe, a disqualified director, who continued to act as director in the running of a company in breach of his disqualification, has been handed a further ban of 11 years following an investigation by the Insolvency Service which found he owed HMRC £176,000

Hinchliffe, who is based in West Yorkshire, was originally given a six year disqualification regarding a previous company, Composite Door Company Ltd, from May 2011. Composite Door Company Ltd, which supplied fitted doors to industry and the public, entered administration on 9 March 2009.

Another company, in the same line of business and called CDC Composite Door Company Limited (CDC), was incorporated 2 March 2009 and purchased the business of Composite Door Company Ltd from the administrator.

Despite his disqualification, Hinchliffe continued to act as a director of CDC and did not resign as a director.

CDC entered creditors’ voluntary liquidation on 21 August 2012 with a deficiency to creditors of £303,748. The company supplied and fitted doors to both industry and the general public.

The investigation found that CDC traded to the detriment of HMRC, who were owed over £176,000, whilst cash of over £97,000 was withdrawn from the company’s bank account and not accounted for by Hinchliffe.

Hinchliffe has now been banned from being a director for 11 years.

Robert Clarke, group leader of insolvent investigations north, which is part of the Insolvency Service said: ‘Directors who ignore their disqualification undertakings and continue to act as directors will be vigorously pursued by the Insolvency Service.’

Pat Sweet | Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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