Nicholas Richard Parkin, a bankrupt of Howden in Yorkshire, has been a handed a 12-year disqualification from being a director following an investigation by The Insolvency Service.
The investigation found that whilst undischarged from his 2007 bankruptcy, Mr Parkin acted as a director of Phoenix Electrical & Maintenance Services (Howden) Ltd (“Phoenix Howden”). And, while the company was under his control, he spent money on luxury goods unrelated to the company’s business and he failed to properly account for significant amounts of money out of the company’s accounts.
He also failed to disclose significant assets belonging to Phoenix Howden at the time it went into liquidation. Due to his failure to cooperate with the Official Receiver, Mr Parkin’s discharge was suspended indefinitely. He thus remains an undischarged bankrupt.
Mr Parkin admitted that he acted as a director and took part in the management of the company between 2007 and 2008 before being formally appointed as a director in the latter part of 2008. As an undischarged bankrupt, Mr Parkin knew that he should not have had any such involvement with a limited company.
Mr Parkin signed a Director Disqualification Undertaking admitting that, while acting as a director of Phoenix Howden, he:
- Caused or allowed the company to enter into transactions totalling almost £55,000 that had nothing to do with the company’s business. It was found that the money was used to purchase jet-skis and equipment, off-road motorcycles and jewellery;
- Failed to ensure that the company kept proper accounting records. As a result, the Official Receiver has not been able to determine what happened to over £63,000, which was transferred out of the company’s accounts while it was under his control. It has therefore not been possible to confirm that this was legitimate company expenditure.
- Allowed five motor vehicles to be transferred from Phoenix Howden to a connected company at the time it went into liquidation, without disclosing what were significant assets.
- Failed to disclose to the Official Receiver, a sixth vehicle in which Phoenix Howden held a financial interest of at least £25,000. The result being that he put these assets out of the reach of creditors.
Commenting on the case, Denise Brown, The Official Receiver said;
"The length of Mr Parkin’s disqualifications sends a clear message that breaching bankruptcy rules is a serious matter and that those who do so and deliberately set out to hide assets can expect to be dealt with harshly"
Notes to editors
1. Nicholas Richard Parkin was made bankrupt on 14 May 2007. As he has failed to cooperate with the Official Receiver, his discharge was suspended indefinitely on 10 March 2009.
2. Phoenix Electrical & Maintenance Services (Howden) Ltd, which was based in Goole, in Yorkshire, was placed into compulsory liquidation on 4 December 2008, following a petition by HMRC.
3. On 28 January 2011, Nicholas Richard Parkin signed a Director Disqualification Undertaking banning him from being a director of a company for a period of 12 years. Disqualification undertakings were introduced in April 2001, they are an administrative equivalent of a disqualification order but do not involve court proceedings. Without specific permission of a court, a person with a Company Director Disqualification, including Undertakings, cannot:-
act as a director of a company; take part, directly or indirectly, in the promotion, formation or management of a company; be a liquidator or administrator of a company; or be a receiver or manager of a company’s property.
Further information on director disqualifications and restrictions can be found at:http://www.insolvency.gov.uk/directordisqualificationandrestrictions/whatisdisqualification.htm
4. 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. The Service also 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.
5. Further information about the work of The Insolvency Service is available fromhttp://www.insolvency.gov.uk
6. Media Enquiries should be directed to:
Denise Rawls, Press Office Manager, Telephone 020 7674 6910 or
Ade Daramy, Press Officer on 020 7596 6187
Phone: For enquiries please contact the issuing dept