The Insolvency Service found Ofosuherne Ofrori-Duah had continued to trade and take on new orders at his wine company, Vintage International Limited, while he knew it was insolvent.
Before the firm went into liquidation in 2012, it had been insolvent for at least 18 months and knowingly had insufficient funds to complete orders or purchase stock. The company continued to take on new customers right up until it entered liquidation, resulting in owing the outstanding debt of £1,063,424.
Mr. Ofrori-Duah clearly failed to run his business properly by ignoring the company’s financial position early on in insolvency. By not acting to maximise creditors’ and indeed customer interests, the business ceased trading and he was disqualified for nine years.
Mark Bruce of the Insolvency Service, said, “The Insolvency Service will always look to remove from the business community those directors who act below the standards that should be expected of them given the circumstances of their company’s trading.”
This is a lesson to all directors to seek advice as soon as possible when a business is struggling. The problems won’t go away and will only get bigger if insolvency is ignored.