Investigations by the Insolvency Service have led to three directors of a recycling company receiving bans from being directors, totalling 26-and-a-half years.
Roger Baker, who has received a 14-year ban from 27 September 2010, became the third director of Devon Dismantling & Recycling Ltd (‘DDR’) to receive a directorship ban this year. This follows a nine-year ban imposed on Derek William Pester, which commenced on 22 September 2010 and a three-and-a-half year ban imposed on Hannah Jayne MacDonald, which commenced in July this year.
Roger Baker, who is already serving a nine-year bankruptcy restriction order, imposed in 2006, was given this second ban for his conduct as a director of Devon Dismantling & Recycling Ltd following an investigation by the Insolvency Service.
Commenting on Mr Baker’s restriction, Official Receiver Jon McGurk said:
“The action taken by the Insolvency Service should reassure the public that when bankrupts are found to be responsible for conduct which is against the public interest or have breached the conditions of their bankruptcy, we will seek to impose severe restrictions on them.”
Roger Baker's Bankruptcy Restrictions Undertaking in 2006 arose following a previous investigation by the Insolvency Service, consequent to Mr Baker's bankruptcy in August 2005. The matters of misconduct admitted were that, while being an un-discharged bankrupt and while being aware of the restrictions imposed upon him, Roger Baker incurred credit totalling £32,857 from four different trade suppliers without informing the respective creditors of his status as an un-discharged bankrupt, thereby cloaking a significant risk which the creditors would not have been prepared to take, were they aware of the true facts."
Although Mr Baker was not formally appointed a director of DDR, information gained from the company’s records, sub-contractors, professional advisers and a potential investor, show that he was directly involved in the management of the company. The terms of the Bankruptcy Restrictions Undertaking preclude any such involvement without first obtaining the leave of the court, which Mr Baker failed to do.
Derek William Pester, while aware of Mr Baker’s bankruptcy restrictions, nevertheless, knowingly allowed him to contravene the terms of his bankruptcy restrictions by acting as a director in DDR.
In the course of the investigations, the Insolvency Service found that the all three directors had also caused or allowed DDR to undertake the construction of a recycling centre for an insolvent associated customer (Mr Baker's wife, Janet Baker), and subsequently obtain credit with no reasonable prospect of being able to make repayment.
Mrs Janet Baker (“Mrs Baker”), is herself currently subject to a 12-year bankruptcy restriction undertaking consequent to her bankruptcy on14 May 2009. The misconduct admitted including both the submission of debtor information to a factoring company totalling £158,469 in respect of debts that were not owed and causing or knowingly permitting controlled waste to be kept and deposited contrary to the Environmental Protection Act 1990.
The 14-year ban imposed on Mr Baker is one year short of the maximum term possible and prevents him from becoming involved in the promotion, formation or management of a company for the duration of the term.
Notes to editors
1. Roger Baker entered into a disqualification undertaking for 14 years (effective from 27 September 2010) in respect of his conduct as a director of Devon Dismantling & Recycling Ltd.
2. Roger Baker was previously declared bankrupt on 31 August 2005. He was described as: Of Blue Hills, Connybeare Lane, Coffinswell, Newton Abbott, Devon TQ12 4SL and trading as a Land Fill Operator as Roger Baker Plant Hire at Little Silver Quarry, Muddiford Near Barnstaple, Devon and lately carrying on the same business at Units 13-14 Darts Business Park, Marsh Barton Farm, Clyst St George, Exeter EX3 0DH. On 4 October 2006, Mr Baker was subject to a bankruptcy restrictions undertaking, which is due to expire on 3 October 2015.
3. Derek William Pester entered into a disqualification undertaking for 9 years (effective from 22 September 2010) in respect of his conduct as a director of Devon Dismantling & Recycling Ltd.
4. Hannah Jayne MacDonald entered into a disqualification undertaking for 3-and-a-half years (commencing on 13 July 2010) in respect of her conduct as a director of Devon Dismantling & Recycling Ltd.
5. Devon Dismantling & Recycling, Company Number 06377796 was incorporated on 21 September 2007 and the trading address was at Little Silver Quarry, Barnstaple, Devon, EX31 4HQ.
6. 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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