Mr Quinn became the director of the long established distribution company Grampian MacLennan’s Distribution
Services Limited, on 16 June 2014 and the Company went into Liquidation on 14 October 2014.
In court Mr Quinn offered no defence to the allegations that in this period. Having sold the business premises to a company owned by a business associate and paid off the mortgage he then could not account for over £76,000 of the sale proceeds. He also transferred some £78,000 from the company bank account to himself or his other businesses allegedly in respect of business expenses.
Mr Quinn offered various explanations for these “expenses” but under investigation these proved to be false .
During his period of directorship, no payments were made to HMRC in respect of VAT, leaving a liability of £519,281 outstanding and only one payment of £12,000 was made in respect of PAYE leaving £590,101 outstanding .Alongside this over £300,000 was owing to trade creditors and over £275,000 owing in redundancy and holiday pay to staff.
Commenting on the case, Rob Clarke, Group Leader, Insolvent Investigations North, said:
It is clear that Mr Quinn paid little regard to the interests of the company in his period of directorship. Effectively on taking over the management of this long established company he sold off the assets and took whatever funds he could for his own benefit leaving the creditors including staff to face significant losses.
The period of disqualification in this case demonstrates that such behaviour will not be tolerated and the Insolvency Service will act robustly against directors who misconduct themselves in this manner.
Notes to editors
Mr Quinn, date of birth June 1969, is a resident of East Kilbride , Glasgow.
Grampian MacLennan’s Distribution Services Limited - CRO No. SC089369 - was incorporated on 22 August 1984 and included a large number of household name companies as its clients in its 30 year history.
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
Persons subject to a disqualification order are bound by a range of other restrictions.
The Insolvency Service, an executive agency sponsored by the Department for Business, Energy and Industrial Strategy (BEIS), administers the insolvency regime, and aims to deliver and promote a range of investigation and enforcement activities both civil and criminal in nature, to support fair and open markets. We do this by effectively enforcing the statutory company and insolvency regimes, maintaining public confidence in those regimes and reducing the harm caused to victims of fraudulent activity and to the business community, including dealing with the disqualification of directors in corporate failures.
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