James Henderson has been disqualified from acting as a director for 9 years for acting as a company director of Henderson Paving Limited (Henderson Paving) while he was bankrupt and failing to make payments related to that company to HM Revenue and Customs.
His wife, Katrina Henderson, has also been disqualified for three-and-a-half years for failing to make sure payments to HMRC were made, again, relating to the same company. The disqualifications follow an investigation by the Insolvency Service.
The company began trading in October 2011 providing paving services to commercial and private clients. On 23 December 2013 a winding up order was made against the company on a petition presented by HMRC.
The Insolvency service investigation found that Mr Henderson’s estate was sequestrated on 5 October 2011 under the provisions of the Bankruptcy (Scotland) Act 1985 on a bankruptcy petition presented by HMRC
An undischarged bankrupt is prohibited from being a director of a company, or in any way whether directly or indirectly to be concerned or take part in the promotion, formation or management of a company, without leave of the court.
The investigation also found that:
- while he was bankrupt and before he was discharged from his sequestration on 8 September 2012, Mr Henderson acted as director of Henderson Paving without leave of the Court to do so
- Mr and Mrs Henderson failed to ensure that the Company complied with its statutory obligations to make payments to HMRC in respect of pay as you earn tax (PAYE) and national insurance contributions (NIC) and caused the Company to trade to the detriment of HMRC
- payments totalling £3,000 were made by the Company between 24 July 2012 and 21 August 2012 .No further payments were made to HMRC in respect of PAYE/NIC throughout the remainder of trade
- during the period 20 December 2011 to 23 December 2013, the Company received payments into its bank account totalling £101,409.57 and made payments from its bank account totalling £104,592.79. Of this sum, only £3,000 was paid to HMRC in relation to PAYE/NIC. £5,944.71 was for the benefit of Mrs Henderson
- as a result, on the cessation of trade, HMRC was owed at least £46,151 out of total liabilities of £47,606
At the date of Liquidation, Henderson Paving Limited had no assets and liabilities of £47,606.
Commenting on the disqualification, Cheryl Lambert, Chief Investigator at the Insolvency Service, said:
Directors who do not take the bankruptcy regime seriously and who do not comply with their obligations to HM Revenue and Customs can expect to be investigated by the Insolvency Service and enforcement action taken to remove them from the market place.
Mr Henderson disregarded his ban and both Mr and Mrs Henderson failed to ensure that the company complied with its statutory obligations. As a result HM Revenue and Customs are owed a substantial amount of money.
Taking action against Mr and Mrs Henderson is a warning to directors to take their duties seriously.
Notes to editors
Henderson Paving Limited (CRO SC409554) was incorporated on 17 October 2011. Its registered office was Holekettle Cottage, Kettlebridge, Fife, KY15 7TY. It traded from the same address.
Henderson Paving Limited was placed into Liquidation on 23 December 2013.
James Henderson is of Holekettle Cottage, Kettlebridge, Fife, KY15 7TY. His date of birth is 7 December 1966. Katrina Henderson is of the same address. Her date of birth is 23 January 1965.
Disqualification orders were made at Dundee Sheriff Court on 8 December 2015. 2015. The disqualifications commence on 29 December 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, and how to complain about financial misconduct, is available.
All public enquiries concerning the affairs of the company should be made to: Cheryl Lambert, Head of Outsourced Investigations, Investigations and Enforcement Services, The Insolvency Service, 3rd Floor, Abbey Orchard Street, London SW1P 2HT. Tel: 0207 596 6117. Email: Cheryl.Lambert@insolvency.gsi.gov.uk.
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