Cement boss barred for cheating creditors
The director of a building materials supplier has been disqualified as a company director for nine years for running a company whilst being bankrupt and diverting money from creditors.
The disqualification prevents Michael Richardson from directly or indirectly becoming involved in the promotion, formation or management of a company for the duration of his ban.
Richardson was made bankrupt on 16 July 2010, and should have resigned from any directorships on that date as required in bankruptcy law.
But he still continued as a director at Speedy Mortar Limited – role he had taken up on 4 November 2003.
In addition, on 17 and 20 December 2010 under his stewardship, SML paid £27,500 to a former director of the company despite Richardson knowing the company was unable to settle a debt of £205,566, and was insolvent.
Richardson claimed to have first became aware that SML was insolvent in December 2010.
But Carslisle Crown Court heard that in November 2010, he had been advised by his accountants that liquidation was appropriate.
He had also been warned of the implications of his bankruptcy and the consequence of any inappropriate transactions made prior to liquidation.
When SML went into liquidation, there were assets of £6,205 and liabilities of £120,292, leaving a total debt of £114,087.
Commenting on the disqualification David Brooks, Head of Company Investigations at the Insolvency Service said: “A bankrupt is made fully aware that he is not allowed to be a company director.
“In this case Mr Richardson failed to abide by this restriction going on to take decisions as a director that harmed creditors.
“A bankrupt who act as a director in contravention of his obligations should not expect to do so without repercussions, particularly when others suffer financial loss as a result.
“The Insolvency Service will investigate and remove such people from the business environment”
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