Removal of rubbish director for 9 years
A director of a removal and rubbish clearance company has received a further ban for breaching a previous disqualification.
Barry Michael Marchant has been disqualified from acting as a director for nine years. An investigation conducted by the Official Receiver found Mr Marchant had acted in the capacity of a director of Direct Relocations Limited (Direct), a removal and rubbish clearance company, whilst being prohibited from doing so, due to his unfit conduct in a previous compulsory liquidation.
Mr Marchant had previously voluntarily agreed to be disqualified from acting as a director between 2 December 2010 and 1 June 2013. Despite this, he acted as a director of Direct during this period whilst a third party who was not aware of his disqualification was enlisted to be the named director at Companies House.
At interview Mr Marchant advised that he had only been an employee during the period of his disqualification. However the evidence collated during the Official Receiver’s investigation disproved this and found he had acted as a director throughout Direct’s trading without any regard or concern to the restrictions placed upon him.
Andrew Stanley, Official Receiver at Chatham, said:
The Insolvency Service will take appropriate action when we find that undertakings given to protect the public and the business community have been breached and where those unfit to manage a company engage in prohibited conduct.
Mr Marchant acted with a complete disregard for the law and was content to provide information during the investigation which was found to be incorrect. Had he wanted to legitimately act as a director he could have made an application to the court to do so; it appears he preferred to act in breach of his disqualification in the hopes his actions would not be identified.
Notes to editors
Mr Marchant’s date of birth is 12 March 1953 and he resides in East Sussex.
Direct Relocations Ltd (CRO No. 06859842) was incorporated on 26 March 2009 and traded from 6 Cookson Gardens, Hastings, East Sussex, TN35 5QH providing a removals and rubbish clearance service.
Mr Marchant acted as a director from the date of Direct’s incorporation to 27 October 2014, when the winding up order was made. Direct’s known liabilities at liquidation totaled £30,717.02.
On 18 May 2016, the Secretary of State accepted a Disqualification Undertaking from Mr Marchant, effective from 8 June 2016, for a period of 9 years. The matters of unfitness, which Mr Marchant did not dispute in the Disqualification Undertaking, were that between 2 December 2010 and 1 June 2013 he acted as a director and in the promotion and management of Direct Relocations Limited whilst being disqualified from being, or acting, as a director as a result of a Disqualification Undertaking, without leave of the Court.
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 can be found here.
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: 4 July 2016
From: The Insolvency Service