The director of a Warwick plant hire firm has been disqualified from acting as a company director for six years for transferring company funds out of creditors’ reach.
Christopher Haughey of C J Haughey Plant Hire Limited was banned following an investigation by The Insolvency Service.
The investigation found that four months before the firm entered administration, Haughey transferred a cash sum of £850,000 to an associated company, of which he was the sole director and shareholder.
Haughey claimed the payments were in settlement of a dividend of £600,000, paid on 10 February 2011 and outstanding expenses of £250,000, paid in two parts on 10 February and 14 February 2011. However, these were found to have taken place to the detriment of the company’s other creditors.
Sue Macleod, head of insolvent investigations, midlands and west, part of The Insolvency Service, said: “The undertaking signed by Mr Haughey sends a clear message to other company directors: If you run a business in a way that is detrimental to its creditors you will be in our sights. The Insolvency Service will investigate you and you could be removed from the business environment.”
C J Haughey Plant Hire Limited went into creditors voluntary liquidation on 17 June 2011 with debts of £827,742. Of this, £606,407 was due to HM Revenue and Customs, of which at least £328,125 related to VAT due on the sale of plant, machinery, vehicles and equipment. In comparison, the associated company was owed just £686.