Manchester-based Harry Charles Miller, the director of a hairdressing company, has been disqualified for six years for failing to disclose company assets to the appointed administrator to Franja Ltd (Franja).
The company traded at various salons located throughout the UK and went into administration on 15 July 2010, leaving creditors 813,147 out of pocket.
Following an investigation by The Insolvency Services Company Investigations team in Manchester., Mr Miller, 59, gave an undertaking to the Secretary of State for Business, Innovation and Skills (BIS), not to act as a director, manage or in any way control a company from 21 November 2012 until 2018. The ban follows his conduct as a director of Franja.
In signing the undertaking, Mr Miller did not dispute that:
On 1 April 2010, the day on which he acquired the shares of Franja, he paid himself and a relative 34,500 each in respect of consultancy fees. No documentary evidence of this consultancy work has been produced.
On 1 July 2010, when he knew or ought to have known that Franja was to be placed into administration, he instructed the companys accountants to credit car mileage claims of 15,600 each for himself and a relative to his directors loan account. No mileage records have been produced to support this payment.
Nor did he dispute that he failed to disclose to the administrator all the assets of Franja, including:
some fixtures and fittings, in premises in Rochdale, Bradford, Altrincham, Birmingham, Llanelli and Stirling which were therefore not included in the purchase price a connected company paid to the administrator for the assets of Franja.
the amount of a directors loan account which he had utilised to purchase the shares of Franja and pay his associated legal and accountancy fees, and which had an overdrawn balance of at least 701,562.
company funds which were held by Franjas solicitors as at the date of administration, 5,000 of which was subsequently paid to Mr Miller, and 12,631 which was paid to the administrator for the purchase of Franjas assets by a connected company.
Commenting on the case, Claire Entwistle, Director of Company Investigations North, said:
The public should be assured that in these tough economic times, directors of insolvent companies who seek to benefit themselves ahead of creditors will be pursued rigorously by The Insolvency Service.
An aggravating feature of this case was that Mr Miller failed to disclose all the companys assets to the Administrator.
This disqualification prevents him from carrying on any business except at his own risk.