Company directors banned for benefiting ahead of creditors

Following an investigation by the Insolvency Service, the directors of Manchester based Vertex Exhibitions Limited, which supplied exhibition stands and display materials, have been disqualified for a period of five years.

This comes after the investigation uncovered that the directors, Stephen Savage and Andrew Jenkinson, took £59,000 out of the company accounts to pay themselves ahead of their creditors at a time when the company’s tax liabilities had increased to £109,000.

In April 2011 both Mr Savage and Mr Jenkinson had given undertakings to the Secretary of State for Business, Innovation and Skills that they would not act as a company director for five years.

The disqualification was undisputed by both Mr Savage and Mr Jenkinson.

Vicky Bagnall, Director of Investigation and Enforcement Services at The Insolvency Service commented that “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. Fair treatment of creditors is essential for business confidence, which is, in turn, essential for economic growth”.

 

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