The director of a care home has been handed a seven year director disqualification for failing to ensure the company kept adequate accounts.
Douglas Arthur Haigh, director of DAH Healthcare Ltd was handed the seven year ban by Bournemouth & Poole County Court on 26 October 2016 following an investigation by the Insolvency Service which revealed inadequacies in the records which left company spending of over £1.9 million unexplained.
In addition Mr Haigh failed to make payments to HM Revenue and Customs for PAYE; the company owed £338,298 for the tax years 2010/11 onwards.
DAH Healthcare Ltd, which traded as The Old Rectory care home in Langton Maltravers, Swanage, went into administration on 21 October 2013, owing £3.6 million to creditors which included £956,213 of unsecured creditors.
Mr Haigh was the company’s only director from 2007 until it went into administration in 2013.
Commenting on the disqualification, Sue MacLeod, Chief Investigator at the Insolvency Service said:
Directors have a duty to ensure that their companies maintain and preserve proper accounting records, and Mr Haigh failed in this regard.
Mr Haigh also failed to comply with his responsibility to submit returns and payments to HM Revenue and Customs. The Insolvency Service will take action against directors who do not take their obligations seriously and abuse their position of trust.
Notes to Editors
Douglas Arthur Haigh is of Salisbury, Wiltshire and his date of birth is January 1965.
DAH Healthcare Ltd (company registration 04140451) was incorporated on 12 January 2001. The company traded from The Old Rectory, High Street, Langton Maltravers, Swanage, Dorset, BH19 3HB.
The registered office was 31-33 Commercial Road, Poole, Dorset, BH14 0HU
Douglas Arthur Haigh was the only director from July 2007 until the administration. Mrs Karen Haigh was registered as a director briefly in 2013, but both state that she took no active role.
The Company entered a Company Voluntary Arrangement in May 2010 which failed in October 2013 when the company was placed into administration.
Following an investigation, the following matters of unfit conduct were identified:
- Mr Haigh failed to ensure that DAH Healthcare Ltd (DAH) filed accurate accounts for the period ended 6 July 2010, or any accounts for subsequent periods
- Mr Haigh failed to ensure that DAH maintained adequate accounting records for the period from 1 June 2011 to 21 October 2013, or if such records were maintained, they were not preserved and/or delivered to the administrator.
As a result of not maintaining adequate accounting records it was not possible to:
- determine what non-business related payments of £53,516 were for
- verify that cheque payments totalling £32,324 were made for the benefit of the company
- identify the recipients of bulk payments totalling £802,532
- verify that credit card payments totalling £162,896 were made for the benefit of the company
- determine what cash withdrawals of at least £41,122 were used for
- ascertain how much Mr Haigh owes to the company in relation to his loan account
- determine the cause of failure of the company
In addition, Mr Haigh failed to ensure that DAH complied with its statutory duties to submit returns and payments to HM Revenue and Customs for PAYE from August 2010 until 21 October 2013, further DAH traded to the detriment of to HM Revenue and Customs from April 2011 until 21 October 2013. The total amount claimed by to HM Revenue and Customs in the administration, including unpaid CVA debts, interest and penalties is £874,223.
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
Persons subject to a disqualification order are bound by a range of other restrictions.
The Insolvency Service, an executive agency sponsored by the Department for Business, Energy and Industrial Strategy (BEIS), administers the insolvency regime, and aims to deliver and promote a range of investigation and enforcement activities both civil and criminal in nature, to support fair and open markets. We do this by effectively enforcing the statutory company and insolvency regimes, maintaining public confidence in those regimes and reducing the harm caused to victims of fraudulent activity and to the business community, including dealing with the disqualification of directors in corporate failures.
BEIS’ mission is to build a dynamic and competitive UK economy that works for all, in particular by creating the conditions for business success and promoting an open global economy. The Criminal Investigations and Prosecutions team contributes to this aim by taking action to deter fraud and to regulate the market. They investigate and prosecute a range of offences, primarily relating to personal or company insolvencies.
The agency also authorises and regulates the insolvency profession, 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: 30 November 2016
From: The Insolvency Service