Undischarged bankrupt banned as director

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A husband and wife have been disqualified as directors for 16 years after their distribution firm’s insolvency exposed that banned bankrupt was managing company

Daniel Patchett received a 10-year ban for managing a company when bankrupt, while his wife, Yasmin Patchett has been disqualified for six years.

Their company, DRP Distribution Ltd, was incorporated in November 2016, and provided storage and distribution services, working with several courier companies.

However, it was wound up by the courts in May 2019. The Official Receiver was appointed as liquidator before uncovering that Daniel Patchett had been running the company whilst being an undischarged bankrupt, in breach of his bankruptcy order.

Investigators established that Daniel Patchett was an appointed de jure director of DRP Distribution Ltd in November 2016. He resigned his position in February 2018 after being made bankrupt a month earlier, which precluded him from managing companies.

Daniel Patchett confirmed to the Official Receiver that he had full involvement in the day-to-day running of the company and continued with these duties during the period of his bankruptcy.

Yasmin Patchett was appointed as a de jure director of the distribution company in August 2017 but left the day-to-day running of the business to her husband from the outset, including the period of his bankruptcy when she knew he was not allowed to do so.

Further enquiries established that DRP Distribution Ltd owed the tax authorities more than £157,000 when the company went into liquidation, as well as just over £51,000 to other creditors.

Rob Clarke, chief investigator for the Insolvency Services, said: ‘When Daniel Patchett’s company collapsed, his misconduct was uncovered and it was highlighted that he was running the company whilst being an un-discharged bankrupt.

‘He took no notice of his bankruptcy restriction and his wife, Yasmin Patchett, knew he was unable to act as a director and covered for him.

‘We will investigate those who try and get around bans while having their spouse as an appointed director whilst continuing to run the business themselves, as the length of this ban shows.’

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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