Directors banned after Rotherham construction firm folds

TWO Rotherham businessmen who caused their company to go bust by withdrawing  £375,000 from its bank account have been barred from acting as company directors for six years.

Peter Baker (44) and Dean Longden (42) were directors of First Fix Ceiling & Partitions Ltd, which was placed into creditors’ voluntary liquidation in February 2011.

An investigation by the Insolvency Service found that in October 2010, following the closure of a number of trade clients, Mr Baker and Mr Longden sought advice from a firm of insolvency practitioners.

They were advised that their company was solvent with liabilities of about £170,000 and assets of £462,000.

The latter consisted mainly of money in the company bank account.

The investigation also showed that between October 2010 and February 2011, Mr Baker withdrew over £190,000 and Mr Longden over £185,000, including £60,000 each on 26 January 2011.

Creditors in the voluntary liquidation totalled £253,865, of which £216,693 were owed to HM Revenue & Customs.

The liquidator has realised funds totalling £114,237, of which £90,000 are repayments made by Mr Baker and Mr Longden.

Clive Tranter, head of the Insolvency Service’s North East team based in Leeds said: “Mr Baker and Mr Longden have presided over a company that in just three months went from being capable of paying its liabilities, to one which was insolvent, by virtue of the directors withdrawing company funds.

“The directors claimed that they were acting on professional advice but their undertakings indicate they have accepted their actions were not those of responsible directors.

“The public can be assured that the Insolvency Service will seek to take action against such directors and aims to protect the public and public finances from future such abuses.”  

The Insolvency Service is part of the Department for Business, Innovation and Skills.