Christopher John Etheridge, director of Staplehurst-based D&R Pike Crane Hire Ltd, has been disqualified for six years by the Department for Business, Innovation & Skills after an investigation by the Insolvency Service.
The Insolvency Service investigation found that by 1st October 2011, D&R was unable to pay its liabilities, which totalled at least 拢77,036.
HM Revenue & Customs was owed at least 拢18,036 in VAT, corporation tax and national insurance contributions.
At least six creditors were pressing for payment and a county court judgement for 拢3,933 was secured against the company on 14th September 2011.
It was also found there were 17 bounced cheques issued from D&R鈥檚 bank account totalling more than 拢8,000 and there were 21 rejected direct debits/standing orders totalling close to 拢7,000.
As a result of Mr Etheridge continuing to trade D&R, its liabilities increased from at least 拢77,036 as at 1st October 2011 to known liabilities of 拢103,175 as at liquidation.
The insolvent trading was aggravated in August 2013 when Mr Etheridge transferred D&R鈥檚 sole crane, its principle tangible asset and form of generating income and turnover, to an associated company for less than its worth. At this time, D&R had liabilities of at least 拢95,549. The company then incurred a cost to hire back the asset, increasing its overheads and reducing any profit it may have made.
Commenting on the disqualification, Andrew Stanley, the Insolvency Service鈥檚 Chatham official receiver, said: 鈥淭here can be no doubt that Mr Etheridge was aware of D&R鈥檚 insolvency, nevertheless he chose to ignore this and expose unsuspecting creditors to the risk of continuing to trade for a further four years.
鈥淲hilst promising suppliers payments, he personally benefitted from the income of D&R and the protection that limited liability afforded him.
鈥淟imited liability is a privilege that should not be abused and directors should note that should they do so, the Insolvency Service will take appropriate action to remove them from the business community.鈥�
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