Two directors of Vertex Exhibitions Limited based in Manchester, have been disqualified for five years each for taking 59,000 from company funds instead of paying creditors. The disqualification follows an investigation by The Insolvency Service.
Stephen Andrew Savage, 41, of Middleton, Manchester and Andrew Ray Jenkinson, 53, of Cheadle, Manchester have given undertakings to the Secretary of State for Business, Innovation and Skills not to act as a company director for five years from 25 and 15 April respectively .
The company traded from Trafford Park, Manchester and supplied exhibition stands and other display materials.
Neither Mr Savage nor Mr Jenkinson disputed that they paid these monies to themselves on 11 May 2011 at a time when the companys tax liabilities had increased to over 109,000 and when a trade creditor had obtained a court judgement against them for over 16,000.
Commenting on these disqualifications, Vicky Bagnall, Director of Investigation and Enforcement Services at The Insolvency Service, said:
The Insolvency Service will rigorously pursue company directors who seek to benefit themselves ahead of their creditors by extracting company funds when others are not being paid.
Fair treatment of creditors is essential for business confidence, which is, in turn, essential for economic growth.
The protection of limited liability should only be available to those who comply with their obligations as company directors. If those obligations are ignored, that protection will be withdrawn.