Mr Singh also failed to maintain adequate accounting records.
The disqualification, which follows an investigation by the Insolvency Service, prevents Mr Singh from being involved in the promotion, formation or management of a company without leave of the court from 6 May 2015.
Kilbybridge Car Sales Limited was formed in November 2012 and sold used cars from a site in Wigston, Leicestershire. Trading Standards received a number of complaints from customers regarding the condition of vehicles they had purchased from Kilbybridge shortly after the company began trading in January 2013.
The company ceased trading in April 2013 and on 16 May 2013 Kilbybridge was placed into Creditors Voluntary Liquidation.
Thirty-five customers claimed £80,599 in the liquidation for vehicles they had bought. The company had no assets when it was placed into liquidation, and therefore there were no funds available to make payments to these customers.
Mr Singh also failed to maintain adequate accounting records, to account for the disposal of cash withdrawn from the company bank account of £301,215 and the disposal of cash income of £113,698.
Susan MacLeod, Chief Investigator at the Insolvency Service, said:
Directors who cause the public to lose money can expect to be investigated by the Insolvency Service and enforcement action taken to remove them from the market place.
Notes to editors
Kilbybridge Car Sales Limited (CRO No.08304952 07050499) was incorporated on 23 November 2012. The company’s registered office was Cedars Service Station, Welford Road, Wigston, Leicestershire, LE18 3TE.
Kilbybridge Car Sales Limited was placed into Creditors’ Voluntary liquidation on 16
Jarnail Singh is of Bilston, Wolverhampton and his date of birth is 31 July 1978.
Jarnail Singh gave an undertaking to the Secretary of State for Business, Innovation & Skills not to be a director for ten years. The disqualification commences on 6 May 2015.
A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot
- act as a director of a company
- take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
- be a receiver of a company’s property
In addition that person cannot act as an insolvency practitioner and there are many other restrictions are placed on disqualified directors by other regulations.
Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings.
Further information on director disqualifications and restrictions is available.
The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency authorises and regulates the insolvency profession, deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.
Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.
All public enquiries concerning the affairs of the company should be made to: The Official Receiver, Public Interest Unit, 2nd Floor, 3 Piccadilly Place, London Road, Manchester, M1 3BN. Tel: 0161 234 8531 Email: firstname.lastname@example.org.