Marcus Julian Malanaphy, also known as Marc Malan and Marc Melanaphy, has become the latest in a trio of directors of Southern Ventilation Ltd to sign a Disqualification Undertaking for causing the company to trade to the unreasonable risk of creditors while knowing or ought to have known, the company was insolvent.
Mr Malanaphy’s 8 year Disqualification Undertaking bans him from acting as a Company Director as his actions, from 31 January 2012 led to increased creditor liabilities of £424,409.
The disqualifications of all 3 directors follow an investigation by the Insolvency Service.
The Company provided ventilation and ductwork services to the construction industry.
The disqualification, from 15 July 2015, also prevents Mr Malanaphy from acting directly in the promotion, formation or management of a company for the duration of the term.
The investigation found that although Mr Malanaphy was not a formally appointed director of Southern Ventilation Limited (“SVL”), he was involved in the day to day management, from incorporation to liquidation. He was involved in hiring and firing staff, authorising payments to creditors; the other directors, company officers and staff acted under his direction. .
John McCormick and Martin William France, the formally appointed directors, had previously each signed up to a 3.5 year Disqualification Undertaking banning them from acting as Company Directors.
Mr McCormick’s and Mr France’s disqualifications are from 18 December 2014 and 9 December 2014, respectively. The prohibition also prevents both from acting directly in the promotion, formation or management of a company for the duration of the term.
Commenting on the disqualifications, Sue MacLeod, Chief Investigator at the Insolvency Service, said:
The Insolvency Service and The Department for Business Innovation and Skills will take firm action to protect the public and the business community. Mr Malanaphy acted with a complete disregard for the creditors and left individuals and traders out of pocket. He could not have acted as he did without the assistance provided by Mr McCormick and Mr France.
Company Directors should note that the Insolvency Service will disqualify those who act in the capacity of a director, even if they are not formally appointed.
Notes to editors
Mr Malanaphy’s date of birth is 27 June 1959 and he resides in Lymington.
Mr Mccormick’s date of birth is 6 August 1973 and he resides in Bournemouth.
Mr France’s date of birth is 18 May 1979 and he resides in Bournemouth.
Southern Ventilation Ltd (CRO No.07324960) was was incorporated on 23 July 2010 and commenced trading in August 2010. Its registered office was Arrowsmith Court, 10 Station Approach, Broadstone, Dorset, BH18 8AT and trading address was Unit 34 Chalwyn Industrial Estate.
Southern Ventilation Ltd went into Administration on 28 January 2013 with assets of £42,667, Liabilities of £686,426 and Share Capital of £100, making a total deficiency of £643,859.
Mr Malanaphy was involved in the formation of Southern Ventilation Ltd and acted as a director from incorporation to Administration. Mr France and Mr McCormick were appointed as directors of Southern Ventilation Ltd on 23 July 2010.
The Company went into Administration on 5 March 2013 with an estimated deficiency of £643,759.
On 24 June 2015, the Secretary of State accepted a Disqualification Undertaking from Marcus Malanaphy, effective from 15 July 2015, for a period of 8 years. The matters of unfitness, which Mr Malanaphy did not dispute for the purposes of the Disqualification Undertaking, were that:
- I acted as a director and caused Southern Ventilation Limited (“SVL”) to trade to the unreasonable risk and ultimate detriment of creditors while I knew, or ought to have known, it as insolvent from 31 January 2012, leading to increased creditor liabilities of £424,409.
On 18 November 2014, the Secretary of State accepted a Disqualification Undertaking from Martin France, effective from 9 December 2014, for a period of 3.5 years. The matters of unfitness, which Mr France did not dispute in the Disqualification Undertaking, were that: I allowed Southern Ventilation Limited (“SVL”) to trade to the unreasonable risk and ultimate detriment of creditors while I knew, or ought to have known, it as insolvent from 31 January 2012, leading to increased creditor liabilities of £424,409.
On 27 November 2014, the Secretary of State accepted a Disqualification Undertaking from John McCormick, effective from 18 December 2014, for a period of 3.5 years. The matters of unfitness, which Mr McCormick did not dispute in the Disqualification Undertaking, were that: I allowed Southern Ventilation Limited (“SVL”) to trade to the unreasonable risk and ultimate detriment of creditors while I knew, or ought to have known, it as insolvent from 31 January 2012, leading to increased creditor liabilities of £424,409.
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
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Published: 25 September 2015
From: The Insolvency Service