Duplicate invoicing leads to director disqualification
Malcolm Frederick Thorpe, the Managing Director of CTL European Ltd, has been disqualified for 7 years for raising 326 false or duplicate invoices over two separate periods which were submitted to the factoring company and caused losses to them of at least £124,670.
Mr Thorpe of Brigg, North Lincolnshire, signed a disqualification undertaking on 23 July 2016, which, from 16 August 2016, prevents him from directly or indirectly becoming involved in the promotion, formation or management of a company for seven years
Mr Thorpe was a director from 15 July 2010 to until the date the company ceased trading on 3 October 2014.
The Company went into administration on 3 October 2014 with an estimated deficiency of £177,551.
The matters of unfitness, which Mr Thorpe did not dispute in the Disqualification Undertaking, were that: While a director of CTL European Limited (CTL), he failed to take adequate action or follow company procedure which resulted in CTL obtaining funds from a factoring company to which CTL was not entitled.
Robert Clarke, Chief Investigator at the Insolvency Service, said:
Using false documents is contrary to the conduct expected of a company director and The Insolvency Service has strong enforcement powers which we will not hesitate to use to remove dishonest or reckless directors from operating a business in an environment with the benefit of limited liability.
Notes to editors
Mr Thorpe date of birth is 16 December 1969 and he resides in North Lincolnshire.
CTL European Ltd (CRO No. 07316549) was incorporated on 15 July 2010 and latterly traded from its headquarters at Estate Road, No. 4 Grimsby North East, Lincolnshire, DN31 2TB.
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
Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings.
Persons subject to a disqualification order are bound by a range of other restrictions. 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.
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Published: 3 October 2016
From: The Insolvency Service