Three directors of a wood flooring company have given disqualification undertakings from May and August this year - one, for acting as a director while prohibited from doing so and the others for allowing him to act in that capacity.
The disqualifications prevent all 3 from directly or indirectly becoming involved in the promotion, formation or management of a company for the duration of their terms.
Andrew Stanley, Official Receiver at Medway, said:
Mr Golesworthy was aware of the restrictions placed upon him but chose to ignore them and continue acting as a director without due care and responsibility.
Company Directors, whether formally appointed or not, should note that the Insolvency Service will take firm action when individuals contravene insolvency restrictions placed upon them. This action extends to those who are willing to be appointed as directors to allow the knowingly prohibited person to act in such a capacity.
Directors have duties and responsibilities to the company and business community alike. Limited liability is a privilege that should not be abused and the Insolvency Service will take action to remove rogue directors from the business community.
As a result of the investigation:
Kevin Phillip Golesworthy, a de facto Director of Wood Flooring Co Limited, has been disqualified for 12 years, from 14 May for acting as a director whilst he was prohibited from doing so by virtue of the restrictions placed upon him firstly as a result of a Bankruptcy Order made against him and secondly due to the bankruptcy restrictions undertaking he gave to the Secretary of State. Whilst acting as a director he allowed the company to trade to the detriment of HM Revenue & Customs
Eugenie Patricia Mary Golesworthy, who was formerly appointed as a director between 30 June 2010 and 2 July 2012 has been disqualified for 4 years for allowing her husband, Kevin Golesworthy, to act as a director whilst he was prohibited from doing so. Mrs Golesworthys disqualification came into effect on 11 May 2015
Paul Savage who was formerly appointed as a director from 2 August 2012 has been disqualified for a period of 4 years for allowing Mr Golesworthy to act as a director whilst he was prohibited from doing so, abrogating his duties and responsibilities as a director and allowing the company to trade to the detriment of HM Revenue & Customs. Mr Savages disqualification comes into effect on 31 August 2015
The investigation uncovered that throughout the companys trading Mr Golesworthy was the person in control of the company finances and the work undertaken. Mrs Golesworthy was aware that her husband was prohibited from acting as a director but was willing to be appointed as a director on his behalf. When Mrs Golesworthy decided to resign as a director Mr Golesworthy recruited Mr Savage, another family member, to be appointed in her place. Mr Savage took no active part in the companys trading or management and was unable to provide the Official Receiver with basic information about the company.
The company was subject to a winding up order on 10 February 2014 presented by the landlord of the previous trading premises. It had liabilities totaling 80,597 with an estimated deficiency of 21,660. The asset being a Directors Loan Account which is currently in dispute.