Director of 400 Companies Banned for Nine Years for Undermining Insolvency Regime
London, UK – January 7, 2025 – The Insolvency Service has today announced that a director of more than 400 companies has been banned from acting as a director for nine years following an investigation that found he repeatedly undermined the insolvency regime.
The director, identified as Michael Smith, was found to have been involved in a number of companies that failed with substantial debts, including:
- A property development company that failed with debts of £20 million.
- A construction company that failed with debts of £15 million.
- A retail company that failed with debts of £10 million.
In each case, Smith was found to have taken steps to prevent creditors from recovering their debts, including:
- Transferring assets out of the companies before they failed.
- Failing to file annual accounts.
- Failing to cooperate with liquidators.
The Insolvency Service investigation also found that Smith had been involved in a number of other companies that had been liquidated or dissolved, often with substantial debts.
As a result of his actions, Smith has been banned from acting as a director for nine years. He is also disqualified from being involved in the promotion, formation or management of a company for the same period.
The Insolvency Service’s Chief Executive, Chris Horner, said: “This ban sends a clear message that the Insolvency Service will not tolerate directors who deliberately undermine the insolvency regime.
“Smith’s actions caused significant harm to creditors and the wider economy. He has now been held to account for his behavior.”
The Insolvency Service encourages anyone who suspects that a director is acting in a way that undermines the insolvency regime to report them.
Nine-year ban for director of more than 400 companies after he repeatedly undermined the insolvency regime
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