Press release

Asset stripper nets 7-year directorship ban

Kevan Robert Quinn has been disqualified from being a director of a limited company for seven years by Edinburgh Sheriff Court.

placeholder

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.

BEIS’ mission is to build a dynamic and competitive UK economy that works for all, in particular by creating the conditions for business success and promoting an open global economy. The Criminal Investigations and Prosecutions team contributes to this aim by taking action to deter fraud and to regulate the market. They investigate and prosecute a range of offences, primarily relating to personal or company insolvencies.

The agency also authorises and regulates the insolvency profession, 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.

The Insolvency Service (in Scotland) 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 and advises ministers and other government departments on insolvency law and practice.

It may also use powers under the Companies Act to conduct confidential fact-finding investigations into the activities of live limited companies.

Contact Press Office

Media enquiries for this press release – 020 7674 6910 or 020 7596 6187

Press Office

The Insolvency Service

4 Abbey Orchard Street
London
SW1P 2HT

This service is for journalists only. For any other queries, please contact the Insolvency Enquiry line on 0300 678 0015.

For all media enquiries outside normal working hours, please contact the Department for Business, Energy and Industrial Strategy Press Office on 020 7215 1000.

You can also follow the Insolvency Service on:

Published 1 December 2016