The Insolvency Service recently reported that Paul Winskill, a director of Premier Asphalt Limited, has been disqualified from acting as a company director for a term of eight years.
Timothy Thompson of Kangs Solicitors comment upon the issues.
The Circumstances | Kangs Insolvency Solicitors
The Insolvency Service published the following:
“The administrators appointed to close the company reported to the Insolvency Service that the directors of Premier Asphalt had not fully co-operated with them and failed to explain why the company had paid out more than £1m in the two weeks prior to their appointment.
…..to avoid paying his debts, Winskill immediately transferred £1,044,794 to three other businesses, which were later discovered to be operated by Winskill although he wasn’t the appointed director.
On 8 February 2018, the Secretary of State accepted a disqualification undertaking from Winskill, after he admitted transferring more than £1 million to the detriment of the company’s general body of creditors. His ban is effective from 1 March 2018 and lasts for eight years.”
Directors’ Statutory Duties | Kangs Insolvency Team
Company directors are obliged to observe strict standards of conduct imposed by detailed and complex legislation.
Any breach of those duties may well result in severe consequences, including imprisonment.
In this reported case, Winskill avoided payment due to the company’s creditors by breaching his duty to them and putting his own personal financial interests first by transferring money to other companies, ostensibly owned by others but which, in reality, he controlled.
The investigation by the Insolvency Service uncovered his activity which led to his lengthy disqualification from being able to hold the position of director of any company or being involved in the management of any company.
How Can We Help ? | Kangs Director Disqualification Solicitors
If you receive any Notice indicating the intent to commence Disqualification Proceedings against you, we would advise that you contact our team through one of our undermentioned solicitors who will be happy to answer any questions and guide you appropriately.
Please feel free to call: