Three directors of a wood flooring company have given disqualification undertakings from May and August this year - one, for acting as a director while prohibited from doing so and the others for allowing him to act in that capacity.
The disqualifications prevent all 3 from directly or indirectly becoming involved in the promotion, formation or management of a company for the duration of their terms.
Andrew Stanley, Official Receiver at Medway, said:
Mr Golesworthy was aware of the restrictions placed upon him but chose to ignore them and continue acting as a director without due care and responsibility.
Company Directors, whether formally appointed or not, should note that the Insolvency Service will take firm action when individuals contravene insolvency restrictions placed upon them. This action extends to those who are willing to be appointed as directors to allow the knowingly prohibited person to act in such a capacity.
Directors have duties and responsibilities to the company and business community alike. Limited liability is a privilege that should not be abused and the Insolvency Service will take action to remove rogue directors from the business community.
As a result of the investigation:
Kevin Phillip Golesworthy, a de facto Director of Wood Flooring Co Limited, has been disqualified for 12 years, from 14 May for acting as a director whilst he was prohibited from doing so by virtue of the restrictions placed upon him firstly as a result of a Bankruptcy Order made against him and secondly due to the bankruptcy restrictions undertaking he gave to the Secretary of State. Whilst acting as a director he allowed the company to trade to the detriment of HM Revenue & Customs
Eugenie Patricia Mary Golesworthy, who was formerly appointed as a director between 30 June 2010 and 2 July 2012 has been disqualified for 4 years for allowing her husband, Kevin Golesworthy, to act as a director whilst he was prohibited from doing so. Mrs Golesworthy‘s disqualification came into effect on 11 May 2015
Paul Savage who was formerly appointed as a director from 2 August 2012 has been disqualified for a period of 4 years for allowing Mr Golesworthy to act as a director whilst he was prohibited from doing so, abrogating his duties and responsibilities as a director and allowing the company to trade to the detriment of HM Revenue & Customs. Mr Savage’s disqualification comes into effect on 31 August 2015
The investigation uncovered that throughout the company’s trading Mr Golesworthy was the person in control of the company finances and the work undertaken. Mrs Golesworthy was aware that her husband was prohibited from acting as a director but was willing to be appointed as a director on his behalf. When Mrs Golesworthy decided to resign as a director Mr Golesworthy recruited Mr Savage, another family member, to be appointed in her place. Mr Savage took no active part in the company’s trading or management and was unable to provide the Official Receiver with basic information about the company.
The company was subject to a winding up order on 10 February 2014 presented by the landlord of the previous trading premises. It had liabilities totaling £80,597 with an estimated deficiency of £21,660. The asset being a Director’s Loan Account which is currently in dispute.
Notes to editors
Mr Golesworthy’s date of birth is 9 September 1973, Mrs Golesworthy date of birth is 19 February 1966 and Mr Savage’s date of birth is 14 January 1983; all reside in Kent.
Wood Flooring Co Ltd (CRO No. 06956446) was incorporated on 8 July 2009 and latterly traded from Mr & Mrs Golesworthy’s home address in Kent providing the laying and refurbishment of flooring.
Mr Golesworthy was never formally appointed as director. Mrs Golesworthy was appointed as a director from 30 June 2010 to 2 July 2012. Mr Savage was appointed as a director from 2 July 2012.
On 23 April 2015, the Secretary of State accepted a Disqualification Undertaking from Mr Golesworthy, effective from 14 May 2015, for a period of 12 years. The matters of unfitness, which Mr Golesworthy did not dispute in the Disqualification Undertaking, were that:
Between 01 July 2010 and 10 February 2014 I acted as director of Wood Flooring Co Limited (WFC) whilst being an undischarged bankrupt and then subject to a Bankruptcy Restrictions Undertaking, without permission of the Court, in contravention of Section 11 of the Company Directors Disqualification Act 1986.
Between 7 May 2011 at latest and 10 February 2014 I caused WFC to trade to the detriment of HM Revenue & Customs (HMRC) and to the benefit of myself and connected parties by failing to meet accruing VAT and Corporation Tax obligations. As a result HMRC are owed at least £48,665.63 excluding interest and penalties….”
On 20 April 2015, the Secretary of State accepted a Disqualification Undertaking from Mrs Golesworthy, effective from 11 May 2015, for a period of 4 years. The matters of unfitness, which Mrs Golesworthy did not dispute in the Disqualification Undertaking, were that:
Between 1 July 2010 and 2 July 2012 I allowed an individual who was an undischarged bankrupt and then was subject to a bankruptcy restrictions undertaking to act as a director of Wood Flooring Co Limited (“WFC”) without permission of the Court, in contravention of Section 11 of the Company Directors Disqualification Act 1986.
On 10 August 2015, the Secretary of State accepted a Disqualification Undertaking from Mr Savage, effective from 31 August 2015, for a period of 4 years. The matters of unfitness, which Mr Savage did not dispute in the Disqualification Undertaking, were that:
Between 2 July 2012 and 10 February 2014 I allowed an individual subject to a bankruptcy restrictions undertaking to act as director of Wood Flooring Co Ltd (“WFC”) without permission of Court, in contravention of Section 11 of the Company Directors Disqualification Act 1986. In addition I abrogated my duties and responsibilities as a director and took little or no part in the management of WFC, therefore allowing it to trade to the detriment of HM Revenue & Customs. At liquidation, WFC had estimated liabilities of £80,597, of which £68,925 was claimed by HMRC.
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.
Contact Press Office
Media enquiries for this press release – 020 7674 6910 or 020 7596 6187
The Insolvency Service
4 Abbey Orchard Street
Media Manager 020 7596 6187
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: