Longer bans for directors
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by Amanda Bradbury • Directors of failed companies are now more likely to be disqualified by the courts, and for longer, according to statistics published last week by the Department of Trade & Industry's Insolvency Service.
Disqualification proceedings against directors started in 1994 rose by 77% to 747 compared to 422 in 1993. In the fourth quarter of last year, 140 disqualification orders were made by the courts, compared to 83 in the same quarter of 1993 a 63% increase.
The number of serious cases also grew during the final quarter of last year with the number of directors disqualified for between five years and the maximum 15 years rising to 61% of the total compared to 42% for the same quarter in 1993.
• In among the most serious cases dealt with by the Insolvency Service last year, directors of two separate haulage firms were disqualified for a total of 41 years, George Hunter and Carol Jeanette Hunter of G Hunter Transport Ltd (and others) were disqualified from being directors. In October, they were banned at Maidstone County Court for 12 years. Gary Michael Hunter was disqualified from being a director for five years. G Hunter Transport Ltd went into liquidation on 7 October last year with an estimated deficiency of £437,821. The matters determining unfitness included acting whilst an undischarged bankrupt and trading at the risk of creditors. The respondents were directors of five other companies which failed with a known deficiency of C1,132,276.
Four directors of another, unconnected, haulier were disqualified last year for a total of 29 years. The directors worked for Graham Lowder Transport Ltd. On 21 April last year at the Cardiff County Court, Graham Robert Lowder and Philip Michael Rafferty Tucker, a de facto director of the company, pleaded guilty to two counts of fraudulent trading.