Mr Ward (62) gave an undertaking to the Secretary of State for Business, Innovation & Skills following an investigation by the Insolvency Service, in which he did not dispute that he caused funds which were due to be paid to NSA to be paid instead to his personal bank account and other unknown bank accounts.
Mr Ward’s disqualification from 16 March 2015 means that he cannot promote, manage or be a director of a limited company until 2022.
The investigation found payments of £815,140 were due to be paid by a customer of NSA in connection with invoices issued between November and December 2012, at a time when NSA was insolvent. At least £241,500 of this amount was paid in to Mr Ward’s personal bank account and £573,640 was paid into an account other than the disclosed company account.
Robert Clarke, Head of Insolvent Investigations North at the Insolvency Service, said:
Directors who put their own personal financial interests above those of customers and creditors damage confidence in doing business and are corrosive to the health of the local economy.
This ban should serve as a warning to other directors tempted to help themselves first; you have a duty to your creditors and if you neglect this duty, you could be investigated by the Insolvency Service and prevented from acting as a director.
Notes to editors
NSA Electrical & Solar Limited (CRO No. 04077705) was incorporated in 2000. The company’s registered office and trading address was 3 Coal Cart Road, Birstall, Leicester LE4 3BY.
NSA Electrical & Solar Limited entered administration on 06 February 2013 with assets of £120,500 and liabilities of £1,226,175.
Mr Ward is formerly of Leicester and his date of birth is 17 January 1953.
The disqualification undertaking was accepted by the Secretary of State on 23 February 2015 and will come into force on 16 March 2015. 5. 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: Jackie Broad, Insolvent Investigations North, 2nd Floor, 3 Piccadilly Place, London Road, Manchester, M1 3BN. Tel: 0115 852 5021 Email: email@example.com.