Saul Hendrick Loggenberg, a prize-winning company director and former resident of Greater Manchester, has been banned from being a company director for 11 years, for paying himself and not his creditors while he was a director of Mocor Ltd.
Mr Loggenberg, who now lives in South Africa, was disqualified following an investigation by the Insolvency Service.
He gave an undertaking to the Secretary of State for Business, Innovation and Skills which prevents him from acting as a company director from 9 August 2013 until 2024 for his conduct in Mocor Ltd.
Mr Loggenberg became the sole director of Mocor on 24 September 2010 following his purchase of the company, including its cash on deposit of 326,862 . The company went into Creditors Voluntary Liquidation on 30 June 2011 owing creditors nearly 280,000.
The sale was subject to a share-purchase agreement dated 24 September 2010, which specified that these funds be used primarily for rent and business rates up to 4 April 2011.
Mr Loggenberg had previously won prizes for entrepreneurship from both the UK Institute of Directors and the Shell RBS Entrepreneur of the Year awards in 2000.
In giving his undertaking, Mr Loggenberg did not dispute that:
– He applied for creditors voluntary liquidation minutes after being told his landlord was planning to apply for compulsory liquidation against him due to rent arrears. He then immediately asked his solicitors to pay over 82,000 into his account and over 10,000 for his personal debts out of the companys account
– Despite frequent payment demands and legal proceedings being started, he failed to pay his landlord the rent arrears of 298,126 and business rates arrears of 119,077,while paying himself 121,241 on 24 September 2010
– The payments he made to himself were for expenses and consultancy fees, but he was unable to produce documentary evidence in support of this claim.
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.
Limited liability protection is only be available to those who comply with their obligations as company directors. If those obligations are ignored, that protection will be withdrawn.