John Boyd Blackwood, who ran Oxenfoord Home Farm (Pathhead) Limited in Midlothian, has been banned from being a company director for five years for selling machinery that was still subject to finance, so was not the companys to sell.
Mr Blackwood, from Pathhead, Ford, in Midlothian, has given an undertaking to the Secretary of State for Business, Innovation and Skills that he will not act as a director of a limited company from 15 March 2013 to March 2018.
Oxenfoord Home Farm (Pathhead) Limited went into creditors voluntary liquidation on 16 June 2011 owing creditors 494,717.
Prior to liquidation, Mr Blackwood, who was the sole director, had failed to honour the terms of finance agreements on items of farm equipment, namely a tractor and a trailer. The company had purchased these two items separately with finance obtained from two different sources. Mr Blackwood then sold on both these items without repaying the finance owed. As a result the third parties who bought the items had to pay additional costs totalling 44,715 to clear the finance debt.
Clive Tranter, Head of Company Investigations North East and Edinburgh, said:
Mr Blackwood showed disregard for the finance companies and disregard for the parties who bought equipment from the company that was not its to sell.
He failed to act properly and, as a result, innocent third parties have suffered. The Insolvency Service will protect businesses and the public by seeking to remove such directors from the business environment.