Christopher John Etheridge of D & R Pike Crane Hire Ltd (D & R) has been disqualified as a director for six years after allowing his company to trade for four years whilst knowing it was insolvent.
An investigation found the company was in debt of £77,036 by October 2011 with the last VAT payment made in January 2010.
Despite a CCJ issued by creditors and escalating debt, the company continued to trade until 19th January 2015 at which point it was put into liquidation. Liabilities had increased to £103,175.
Official Receiver, Andrew Stanley, commented, “There can be no doubt that Mr Etheridge was aware of D & R’s insolvency, nevertheless he chose to ignore this and expose unsuspecting creditors to the risk of continuing to trade for a further 4 years.
“Whilst promising suppliers payments, he personally benefitted from the income of D & R and the protection that limited liability afforded him.”
It is the director’s duty to act in the best interests of creditors if the company is insolvent. Failing to do so could result in disqualification if investigated. It is always best to seek advice if there is any uncertainty.