C J Haughey boss banned for six years

Aaron Morby 8 years ago
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A subcontractor and plant hire company boss, who was once hailed as an upcoming future industry leader, has been banned from being a director for six years.

Thirty six-year-old Chris Haughey was banned after he transferred funds from his failed plant company to an associated firm, putting the cash out of the reach of creditors.

An Insolvency Service probe into Haughey and his Coventry-based firm C J Haughey Plant found that just four months prior to the firm’s liquidation, he transferred £850,000 in cash to an associated company, where he was sole director and shareholder.

When challenged Haughey claimed the payments were in settlement of a dividend of £600,000 and outstanding expenses of £250,000.

But investigators found the payments took place to the detriment of the company’s other creditors including HM Revenue and Customs.

CJHP traded as a plant hire company, mainly for another associated company, C J Haughey Construction.

On 3 December 2011 the CJHP was placed into administration and on the same day received a demand for £833,665 due under a cross guarantee given on behalf of CJHC.

Investigators found Haughey then caused CJHP to sell all plant fetching £1,643,105, including VAT of £328,125.

Management accounts for CJHP to 31 December 2010 showed shareholder funds of £18,731 and that £64,269 was owed to the associated company.

Management accounts to 28 February 2011, following the sale of plant and the subsequent payment of dividends and expenses to the associated company, showed a net loss of £254,869 and balance sheet deficit of £357,930.

CJHP went into creditors voluntary liquidation on 17 June 2011 with debts of £827,742. Around three quarters of this sum was due to HM Revenue and Customs, at least £328,125 was VAT due on the sale of plant and equipment.

In comparison, the associated company was owed just £686.

Haughey’s previous failures include the administration of C J Haughey Construction on 3 December 2010 and the liquidation of C J Haughey Contractors on 5 April 2011.

Sue Macleod of the Insolvency Service, said: “The undertaking signed by Mr Haughey sends a clear message to other company directors: If you run a business in a way that is detrimental to its creditors you will be in our sights. The Insolvency Service will investigate you and you could be removed from the business environment.”

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