13-year bankruptcy restriction for acting as director while under bankruptcy restrictions
Ian Andrew Kimberley, a former company director, has had a thirteen year bankruptcy restrictions order made against him for breaching the restrictions of his bankruptcy, and an earlier bankruptcy restrictions undertaking, by acting as the director of a limited company.
A bankruptcy order was made against Mr Kimberley on 10 April 2012, and on 6 January 2014 he entered in a Bankruptcy Restrictions Undertaking for 6 years as a result of his conduct during his bankruptcy.
However, in late 2014 the Official Receiver received information indicating Mr Kimberley had acted as a company director, throughout his bankruptcy and throughout the later bankruptcy restrictions undertaking.
This led to an investigation, after which the decision was taken that such serious conduct warranted applying for a second bankruptcy restrictions order for a significantly longer period. On 24 August 2015, a bankruptcy restrictions order was made against Mr Kimberley for a period of 13 years, expiring on 23 August 2028.
Martyn Rawbone, Deputy Official Receiver, said:
The Official Receiver will continue to uphold the integrity of the insolvency regime and will not hesitate to act if a bankrupt breaches the restrictions to which he is subject, especially if they result in losses to creditors.
Extending the period of the bankruptcy restrictions should act as a deterrent and warning to others who might be considering such breaches.
Notes to editors
Ian Andrew Kimberly is of Worcestershire and his date of birth is 30 November 1968.
If the Official Receiver considers that the conduct of a bankrupt has been dishonest or blameworthy in some other way, he (or she) will report the facts to court and ask for a Bankruptcy Restrictions Order (BRO) to be made. The court will consider this report and any other evidence put before it, and will decide whether it should make a BRO. If it does, the bankrupt will be subject to certain restrictions for the period stated in the order. This can be from 2 to 15 years.
The bankrupt may instead agree to a Bankruptcy Restrictions Undertaking (BRU) which has the same effect as an order, but will mean that the matter does not go to court.
These are restrictions set out in insolvency law that the bankrupt is subject to until they are discharged from bankruptcy – normally 12 months and include that bankrupts:
- must disclose their status to a credit provider if they wish to get credit of more than £500
- who carry on business in a different name from the name in which they were made bankrupt, they must disclose to those they wish to do business with the name (or trading style) under which they were made bankrupt
- may not act as the director of a company nor take part in its promotion, formation or management unless they have a court’s permission to do so
- may not act as an insolvency practitioner, or as the receiver or manager of the property of a company on behalf of debenture holders
Additionally, a person subject to a Bankruptcy Restrictions Order/Undertaking or a Debt Relief Restrictions Order/Undertaking may not be a Member of Parliament in England or Wales.
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}(https://www.gov.uk/government/organisations/insolvency-service).
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Published: 8 September 2015
From: The Insolvency Service