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Debt-ridden bosses face five year ban

21st December 2000
Page 12
Page 12, 21st December 2000 — Debt-ridden bosses face five year ban
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Which of the following most accurately describes the problem?

by Mike Jewell

The boss of a driving agency has been disqualified from holding a company directorship after his company ran up debts of nearly £200,000 in just two years.

Cardiff County Court heard how Kenneth Rattenbury, along with another director, Ian Gaughan, incorporated South Wales-based Total Cover Recruitment Services in September 1996, and commenced trading in July1997.

But after two years the company had gone into liquidation with debts of £195,000, of which £120,000 was owed to the Crown.

The court was told that the company traded successfully for a period of three years prior to its incorporation, although any debts were transferred to the new company upon incorporation, Rattenbury was found to be unfit to hold a directorship because he caused Total Cover to continue trading while insolvent after 24 July.

At a previous hearing. Gaughan had ben disqualified for five years.

Rattenbury, who was not called to give evidence, also accepted that he should receive a five-year disqualification.

Giving his decision, District Judge Robert Hendicott said: "These are serious charges which have been brought and I have expressed my concerns in the way this company was run for two years, running up these considerable debts,

"It also seems fair that in the absence of defined responsibilities between the directors, there seems to be no good reason why there should not be the same penalty for the both of you," he concluded.


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