An investigation by the Insolvency Service has led to a second and longer disqualification for Glen Dean Crosthwaite, director of a Leeds based recruitment agency, for breaching his original disqualification.
The investigation found that Mr Crosthwaite continued to act as a director of UK Recruitment Staff Ltd, despite resigning and appointing another person as director. The fellow director, Darren Reece Ashford, has also been disqualified.
Both Mr Crosthwaite,42, and Mr Ashford,49, have given undertakings to the Secretary of State for Business Innovation and Skills not to act as a director for periods of 11 and 5 years respectively.
The disqualification means that Mr Crosthwaite and Mr Ashford may not be a director of a company or be involved in the management of a company in any way for the duration of their respective disqualifications.
The investigation also discovered that despite resigning as a director of the company on 1 December 2012, Mr Crosthwaite, of Wortley, Leeds, West Yorkshire, continued to act as a director in controlling the affairs of the company, including being the sole person in charge of the company bank account and dealing with HM Revenue & Customs. Darren Reece Ashford, also of Wortley, Leeds, West Yorkshire was appointed a director of UK Recruitment Staff Ltd on 15 May 2012 following Mr Crosthwaites resignation but allowed Mr Crosthwaite to continue to run the business.
Mr Crosthwaite had previously given an undertaking to the Secretary of State in the case of Network Securities UK Ltd for making payments to himself and associated businesses of over 370,000 at a time when creditors were not being made to creditors, principally HMRC. Mr Crosthwaites disqualification was effective from 30th November 2012 to 29th November 2018
Both Mr Crosthwaite and Mr Ashford also allowed the company to trade to the detriment of HMRC, in that during the 13 months of the companys trading no payments were made to HMRC in respect of PAYE taxation and National Insurance Contributions. At the date of liquidation, 13 April 2013, HMRC were owed a total of over 100,000 in respect of Pay As You Earn (PAYE) and National Insurance Contributions (NIC), whilst the directors and their associates received more than 107,000.
Robert Clarke, Group Leader of Insolvent Investigations North, which is part of The Insolvency Service said:
Directors who ignore disqualification undertakings that they have previously given, and those who provide cover for them, to allow them to continue to run limited companies will be vigorously pursued by The insolvency Service. The length of the undertakings in this case sends a clear message to the business community that such actions will not be tolerated.