In a recent insolvency investigation Richard Price and Timothy Porter, both directors of Recruit Investments Limited, which headed up a group of businesses specialising in labour recruitment, have been banned from being company directors for 6 years and 5 years respectively for transferring company assets for no consideration, including Arabian horses and money to one of the directors and parties unconnected with the company.
The insolvency Service investigation, which led to the disqualifications, uncovered that Mr Price and Mr Porter:
- transferred company assets with a value of £242,640, which included a number of Arabian horses, to parties unconnected with the company for no consideration in return
- paid £165,541 of company money to Mr Price and/or unconnected parties without due regard to the interests of the company’s creditors, who were largely left unpaid. The funds were withdrawn and the assets transferred at a time when Mr Price and Mr Porter were, or ought to have been, aware that the company was insolvent and unable to pay its debts as and when they fell due.
Recruit entered into liquidation on 12 November 2013 with a deficiency of £2,656,328. Mr Price and Mr Porter gave undertakings to the Secretary of State for Business, Innovation and Skills on 19 August 2015 and 08 August 2015 respectively which prevents them from being directly or indirectly becoming involved in the promotion formation or management of a company until 22 September 2021 and 31 August 2020 respectively.
Jane Knight, Senior Investigator, Insolvent Investigations – Midlands and West said:
The Insolvency Service will rigorously pursue company directors who seek to benefit themselves ahead of their creditors by extracting company funds when others are not being paid.
Limited liability protection is only available to those who comply with their obligations as company directors. If those obligations are ignored, that protection will be withdrawn.