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Bankrupt cement boss banned 18 June 2013

The director of a cement company has been banned from acting as a company director for nine years for running a company whilst bankrupt and diverting money from creditors.

Michael Richardson of Speedy Mortar Limited was disqualified by Carlisle Crown Court following an investigation by The Insolvency Service.

David Brooks, head of Company Investigations at the Insolvency Service said: “A bankrupt is made fully aware that he is not allowed to be a company director.

“In this case Richardson failed to abide by this restriction going on to take decisions as a director that harmed creditors.

“A bankrupt who acts as a director in contravention of his obligations should not expect to do so without repercussions, particularly when others suffer financial loss as a result.”

Richardson was appointed director of Speedy Mortar on 4 November 2003 and was declared bankrupt on 16 July 2010. He continued to run the company in defiance of bankruptcy laws.

Richardson claimed to have first become aware that Speedy Mortar was insolvent in December 2010. However, the court heard that in November 2010, he had been advised by his accountants that liquidation was appropriate.

On 17 and 20 December 2010, under the control of Richardson, SML made payments of £27,500 to a former director of the company, despite SML owing debts of £205,566, which it was unable to pay.

Speedy Mortar went into liquidation on 10 February 2011, with assets of £6,025 and liabilities of £120,292 – a deficiency of £114,087.

 

 

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