The director of an Edinburgh joinery company has been disqualified from acting as a company director for 12 years, for running a business while bankrupt.
Ian MacKay of Edinburgh Timber Products Limited was disqualified following an investigation by the Insolvency Service.
Edinburgh Timber Products was wound up with debts of nearly £100,000 in Edinburgh Sheriff Court on 28 May 2012, following a petition by HM Revenue & Customs.
MacKay was found to have been director of the company from its incorporation in February 2009 until the appointment of the liquidator on 28 May 2012, despite being prohibited from acting as a director while he was sequestrated over the period 6 October 2010 to 6 October 2011.
The investigation found that MacKay used Edinburgh Timber Products as a successor enterprise to allow his failed sole trader business, Ian MacKay Joiners, to continue trading.
Robert Clarke, group leader – insolvent investigations north at the Insolvency Service, said : “In order to maintain stakeholder trust in the corporate structure it is imperative that we have sufficient transparency, such that businesses know that the registered directors of a company are responsible individuals who will effectively discharge the stewardship function for which they are responsible.
“Where individuals seek to hide their involvement to act in contravention of a statutory ban, and others assist in that deception, they can expect to be the subject of rigorous investigation and to be removed from the corporate arena for a lengthy period.”
MacKay was also found to have caused the company to trade to the detriment of HMRC, paying out over £400,000 against other debts over the course of trading but making no payments to HMRC, leaving them with a debt of £68,548 when the company failed, a debt which spanned three consecutive tax years.
MacKay’s co-directors, William Holmes and Craig MacKenzie, who were both registered directors of the company for 18 months were also disqualified for a period of two and a half years each in March 2014 due to their failure to supervise and control the company’s affairs.