Two directors of Plast-Tec Plastering Systems Limited have been disqualified for eight years each for causing the company to factor false invoices totalling ?715,000.
Michael O?Toole, 56 of Sheffield and Mark Rice, 39 of Sheffield both provided an eight year disqualification undertaking to the Secretary of State in respect of their conduct. Mr O?Toole?s disqualification commenced on 6 July 2017 and Mr Rice?s ban began on 28 June 2017.
An Insolvency Service investigation found invoices totaling ?760,000 had been factored, of which only one, of ?45,000, was found to be a true invoice.
Commenting on the disqualification, Martin Gitner, Deputy Chief Investigator of Insolvent Investigations, Midlands & West at the Insolvency Service, said:
The directors failed to run their business in accordance with the terms set out in its agreement with the invoice discount facility provider.
The company obtained money to which it was not entitled by submitting details of sales invoices which did not exist and this caused the provider to incur financial losses.
Using false documents is contrary to the conduct expected of a company director and the Insolvency Service has strong enforcement powers which we will not hesitate to use to remove dishonest or reckless directors from operating a business in an environment with the benefit of limited liability.