Ronald Trevor Barnes, who was the director of Cleanliness Ltd, a manufacturer of personal care products, has been disqualified for six*years.
Mr Barnes, has given an undertaking to the Secretary of State for Business, Energy & Industrial Strategy with effect from 15 November 2017 following an Insolvency Service investigation.
The company went into liquidation on 1 August 2014 owing ?1,299,330 to creditors, of which ?510,100 was owed to the landlord, ?380,850 to trade and expense creditors, ?354,736 to the director and ?53,644 to other creditors.
From May 2013, the date a claim was settled in the favour of the company for the sum of ?925,000, to 15 August 2014, the date that the company entered into liquidation, Mr Barnes caused the company to pay those monies to connected parties, the majority of which were not for the benefit of the company and to the detriment of creditors - who included Cleanliness?s landlord which was owed ?510,100 under a tenancy agreement.
Commenting on the disqualification, Sue MacLeod, Chief Investigator of the Insolvency Service said:
The Insolvency Service will not hesitate to investigate directors who have caused a company to pay monies to connected parties rather than to the benefit of either the company or its creditors and will rigorously seek disqualification in all such cases.