The directors of Roxburgh Homes Limited, a property development company based in Edinburgh, have been disqualified from acting as company directors for a combined total of 19 years following an investigation carried out by The Insolvency Service.
Garry Gibson has been disqualified from acting as a director of any company, without permission from a court, for 15 years, the maximum disqualification period available. Steven Gibson was given a four year period of disqualification at Edinburgh Sheriff court.
Garry Gibson was previously disqualified from acting as a company director in July 1997 for a period of 12 years in relation to his misconduct as a director of Red Castle Homes Ltd. Between 2002 and 2008 Garry Gibson breached the disqualification order and acted in the management of Roxburgh Homes using his son to act as a director in name only.
Despite his existing disqualification The Insolvency Service found that Mr Gibson was the main point of contact with the company’s bankers; described himself as the ‘owner’ of Roxburgh Homes and negotiated a joint-venture agreement with a finance company. Roxburgh Homes Limited went into compulsory liquidation on 13 October 2008 owing £475,826 in respect of liabilities that began accruing in December 2006.
Steven Gibson was appointed as a registered director of the company on 30 June 2005. Investigators found Steven Gibson abrogated his duties to his father, and by doing so caused or permitted Garry Gibson to act as a director, which led to the detriment of a number of creditors.
Members of the public who think they know of a person who is acting in breach of a Director Disqualification Order or Undertaking can report them to The Insolvency Service Enforcement Hotline on 0845 601 3546.
Commenting on the disqualifications, Robert Burns, Head of Company Investigations and Enforcement at The Insolvency Service said:
“The public and other company directors should be reassured that The Insolvency Service has robust powers which we will not hesitate to use to protect consumers from directors like Mr Gibson who ignore the terms of their disqualification and go on to run further businesses to the detriment of their creditors.”
Notes to editors
1 The director disqualifications for both Garry Gibson and Steven Gibson start from 22 November 2010.
2 Without specific permission of a court, a person with a Company Director Disqualification, 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 athttp://www.insolvency.gov.uk/directordisqualificationandrestrictions/whatisdisqualification.htm
Ignoring a Company Director Disqualification is a criminal offence which can result in a custodial sentence. Criminal prosecutions are taken forward by the Department of Business, Innovation and Skills. See Insolvency Service PN “Dodgy company director imprisoned for 2 ½ years for fraudulent trading.”
3 Companies Investigation is part of the Insolvency Service and carries out confidential enquiries on behalf of the Secretary of State for Business, Enterprise & Regulatory Reform.
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. Further information about the work of The Insolvency Service is available from http://www.insolvency.gov.uk
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