Glamorgan director disqualified for hiding assets
Colin James McKenzie, director of Blaina Manufacturing Ltd in Mid-Glamorgan, has been disqualified from acting as a director for 6 years for failing to disclose company assets following liquidation and for breaching agreements the company had entered into with the Welsh Government.
The disqualification undertaking, which starts on 15 April 2015, prevents Mr McKenzie from becoming involved in the promotion, formation or management of a company for the duration of the term.
Blaina Manufacturing Limited was formed in 2009 and traded in manufacturing and testing building panels, and structural light gauge steel frames. The company’s trading was facilitated by entering into agreements with the Welsh Government. The company was placed into voluntary liquidation on 23 March 2012
An investigation by the Insolvency Service found that Mr McKenzie had failed to disclose to the liquidator a debt of £1,430,347 owed by an associated company and assets worth £603,073. Mr McKenzie also caused the company to breach agreements it had entered into, by disposing of assets worth £93,960, and obtaining credit of £97,000 whilst insolvent.
At liquidation, the company had no assets and liabilities of £659,736.
Commenting on the disqualification, Susan MacLeod, Chief Investigator at the Insolvency Service, said:
Directors who fail in their obligations and cause creditors and the public to lose money can expect to be investigated by the Insolvency Service and enforcement action taken to remove them from the market place.
Notes to editors
Blaina Manufacturing (CRO No. 07050499) was incorporated on 20 October 2009. The company’s registered office was Unit 3, Rhymney River Bridge Road, Cardiff, South Glamorgan, CF23 9AF.
Blaina Manufacturing Limited was subject to Creditors’ Voluntary liquidation on 23 March 2012.
Colin James McKenzie is of Cross Inn, Pontyclun and his date of birth is 12 December 1967.
Colin James McKenzie gave an undertaking to the Secretary of State for Business, Innovation & Skills not to be a director for six years. The disqualification commences on 15 April 2015.
A disqualification order or undertaking 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.
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 is available..
Published: 27 March 2015
From: The Insolvency Service