A disqualified director, Mark Stephen Hinchliffe, 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.
Mr Hinchliffe, 49, of Harrogate and Wakefield in West Yorkshire provided a Disqualification Undertaking to the Secretary of State for Business, Innovation and Skills regarding a previous company, Composite Door Company Ltd, , for six years from 24 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 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, Mr Hinchliffe continued to act as a director of CDC and did not resign as a director. The investigation also found that CDC traded to the detriment of HMRC, who were owed over 176,000, whilst cash of over 97,000 was withdrawn from the companys bank account and not accounted for by Mr Hinchliffe. Mr Hinchliffe has given an undertaking to the Secretary of State for Business, Innovation & Skills, to be bound for 11 years, by the restrictions set out in insolvency law that a bankrupt is subject to until they are discharged from bankruptcy normally 12 months until 2025. In addition, he cannot manage or control a company during this period without leave of the court.
Commenting on the disqualifications, 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. The length of the subsequent undertaking reflects the seriousness the Secretary of State attaches to such breaches.
Furthermore, directors who ignore their responsibilities to the Crown by failing to pay and/or submit returns as and when required, will be subject to investigation by the Insolvency Service. The public can be rest assured that every effort will be made to protect the public purse by ensuring they are disqualified from acting as a director.