Press release

Door slams shut for disqualified director

A disqualified director, Mark Stephen Hinchliffe, who continued to act as director in the running of a company in breach of his disqualification, has been handed a further ban of 11 years following an investigation by the Insolvency Service.

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Mr Hinchliffe, 49, of Harrogate and Wakefield in West Yorkshire provided a Disqualification Undertaking to the Secretary of State for Business, Innovation and Skills regarding a previous company, Composite Door Company Ltd, , for six years from 24 May 2011. Composite Door Company Ltd, which supplied fitted doors to industry and the public, entered administration on 9 March 2009.

Another company, in the same line of business CDC Composite Door Company Limited (CDC) , was incorporated 2 March 2009 and purchased the business of Composite Door Company Ltd from the Administrator.

Despite his disqualification, Mr Hinchliffe continued to act as a director of CDC and did not resign as a director. The investigation also found that CDC traded to the detriment of HMRC, who were owed over £176,000, whilst cash of over £97,000 was withdrawn from the company’s bank account and not accounted for by Mr Hinchliffe.

Mr Hinchliffe has given a director disqualification undertaking to the Secretary of State for Business, Innovation & Skills for 11 years preventing him from managing or controlling a company without leave of the court until 2025.

Commenting on the disqualifications, Robert Clarke, Group Leader of Insolvent Investigations North, which is part of The Insolvency Service said:

Directors who ignore their disqualification undertakings and continue to act as directors will be vigorously pursued by the Insolvency Service. The length of the subsequent undertaking reflects the seriousness the Secretary of State attaches to such breaches.

Furthermore, directors who ignore their responsibilities to the Crown by failing to pay and/or submit returns as and when required, will be subject to investigation by the Insolvency Service. The public can be rest assured that every effort will be made to protect the public purse by ensuring they are disqualified from acting as a director.

Notes to editors

CDC Composite Door Company Limited (CRO No. 06086184) entered creditors’ voluntary liquidation on 21 August 2012 with a deficiency to creditors of £303,748 of which £176,337 was due to HMRC. CDC Composite Door Company Limited (CRO No. 06833141) supplied and fitted doors to both industry and the general public.

Mark Stephen Hinchliffe’s date of birth is 2 June 1965.

Mr Hinchliffe gave an undertaking on 1 December 2014 to the Secretary of State for Business Innovation & Skills not to be a director for 11 years. The undertaking was accepted and the period of disqualification commences on 22 December 2014.

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..

Published 30 January 2015
Last updated 8 February 2017 + full page history
  1. Text amended to clarify the penalty is for unfitness as a company director and not a bankruptcy restriction. Mr Hinchliffe has not been made bankrupt.
  2. First published.