The Insolvency Service are investigating the directors of Nationwide Electrical Safety Limited as it became clear that around £1m of unexplained payments had been made to them and connected companies shortly before a company voluntary arrangement (CVA) failed and the firm went into liquidation.
The company’s records failed to properly explain the payments therefore the Insolvency Service were unable to establish whether the directors had acted properly or used the ambiguity of the sketchy company records to attempt to hide wrong doing.
In addition, the funds were transferred whilst other creditors went unpaid, including HMRC.
Both directors were banned from being a director of a limited company for 8 years.
It is important for anybody facing financial difficulties, whether personally, directors of limited companies or partnerships, to seek advice from a licensed insolvency practitioner as soon as possible.
For more information on bankruptcy, liquidation, administration and all the other insolvency procedures, or to take advantage of our free consultation, please telephone Stella Flemmings on 01377 257788, 01724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at our Driffield, Scunthorpe or York offices.
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