Five-year ban for taking creditors’ cash
Andrew Connolly, director of Connolly Demolition, based in Accrington, has been disqualified for five years for taking almost £81,000 from company funds meant for creditors. The disqualification follows an investigation by The Insolvency Service.
Connolly, 50, of Burnley, Lancashire gave an undertaking to the Secretary of State for Business, Innovation & Skills not to act as a company director for five years from 4 January 2013.
Another director of the company, 41-year-old Michael David Holland of Nelson, Lancashire also gave an undertaking and is disqualified for three years from the same date, for allowing Connolly to make the payments.
Connolly Demolition Limited, which provided demolition and salvage services, went into liquidation on 9 June 2010, owing creditors £1,293,974.
Connolly admitted that between 1 February 2010 and 9 June 2010, he paid himself £80,740 from the company's account, despite the company being insolvent. In turn, Holland accepted that he had allowed Connolly to make the payments, even though both understood that this money should have been used to pay creditors.
Claire Entwistle, director of Company Investigations (North) at The Insolvency Service, said: "The Insolvency Service will rigorously pursue company directors who seek to benefit themselves ahead of their creditors, and those who stand aside and allow them to do so.
"Fair treatment of creditors is essential for business confidence, which is, in turn, essential for economic growth.
"The protection of limited liability should only be available to those who comply with their obligations as company directors. If those obligations are ignored, that protection will be withdrawn."