Christopher Lister, the Director of GMS Stone Supplies Ltd (GMS), has been disqualified for three and a half years for causing a preference transaction to a connected company, following a Disqualification Order on 18 December by Leeds County Court against Mr Lister.
The disqualification, from 8 January 2016, prevents Mr Lister from directly or indirectly becoming involved in the promotion, formation or management of a company until July 2018.
The preference transaction had the effect of giving one creditor a preference in the insolvency to the prejudice to the general body of creditors. Specifically, the matter of Mr Listers unfitness was that, whilst a director of GMS Stone Supplies Limited and the company was insolvent, an invoice for the sale of stock in the sum of 268,762 inclusive of VAT was raised to a connected company, which resulted in causing GMS to transfer stock to the connected company to the value of that invoice. The transfer was to the detriment of GMS creditors.
On 28 January 2013, less than a month before GMS was liquidated and whilst it was in financial difficulty, Mr Lister caused GMS to transfer stock in the sum of 268,762 (inc. VAT) to a company of which Mr Lister was a director, which was also a creditor of GMS. The stock transfer was to the detriment of GMSs trade creditors and HMRC, who were owed 171,952 at Liquidation on 27 February 2014, as GMS did not receive full payment for the value of stock transferred.
Robert Clarke, Group Leader, Insolvent Investigations North, of the Insolvency Service, said:
The Insolvency Service and The Department for Business will take firm action against those directors who act with a disregard for company creditors, causing them loss and who are unfit to manage a company, to protect the public and the business community