Stuart Edwin John Beare has given a nine year bankruptcy restrictions undertaking for providing false information to a finance company in respect of his assets and for acting in the management of a company whilst bankrupt.
Mr Beares restriction follows an investigation by the Insolvency Service.
Mr Beare (72) undertook to be bound by the restrictions set out in law, until January 2024. In particular, Mr Beare cannot manage or control a company during this period without leave of the court.
The investigation found that in 2007, Mr Beare provided a personal guarantee, limited to 500,000, to a finance company, in order for a company, of which he was a director and which was subsequently wound up with no assets – to obtain a significant loan. As part of the loan application process, Mr Beare was required to provide a list of his personal assets. The list which he provided included the family home, which at that time he estimated to have a net value of 225,000.
The statement of assets provided to the finance company in 2007 proved to be false. This resulted in a call upon Mr Beares personal guarantee and the finance company petitioning for his bankruptcy. Despite being bankrupt, he then made similar applications as a director of another limited company.
Mr Beare subsequently stated that he had transferred his interest in the family home to a relative in 2006. The finance company confirmed that they would not have granted the loan had they been aware of the property having been transferred prior to the personal guarantee being given.
The investigation also found that; following the making of his bankruptcy order, on 28 January 2014, Mr Beare had acted in the procurement of finance for a limited company of which he was a director, and dealt with the companys financial affairs at a time whilst he was bankrupt, which he was prohibited from doing.
Commenting on the case, Laura Pacey, Deputy Official Receiver for Birmingham said;
Company directors should be aware that the law prevents them from acting in this way, and that if they disregard the legal provisions which attempt to protect financial institutions, the Insolvency Service will take enforcement action against them.