Breaching existing ban causes extended disqualification for boss

David Stuart, an engineering boss from Aberdeen, has had his disqualification increased by the court after he was found running a company after his first disqualification.

David Stuart was the sole director of Nabscaff Limited (Nabscaff) and received a six-year ban following the liquidation of the company after he failed to keep books and records. Despite his disqualification, Stuart started a new company, Tern Engineering Services Limited (TES) which provided engineering services to the oil and gas industry.

TES’s was wound-up in September 2016 and the Insolvency Service started an investigation and found that:

  1. TES’s account records showed that during March and April 2016 the company’s bank account received £34,770, of which £6,000 was taken by David Stuart, £9,300 was used to pay his personal gambling accounts and £17,010 was paid to unknown payees. None of this money was paid to HMRC even though they were the biggest creditor to both Nabscaff and TES’s.
  2. HMRC were owed £57,487 by TES’s and £115,472 by the previous company Nabscaff.

David Stuart did not attend court for the disqualification proceedings despite the fact that he was fully aware of his disqualification. On 2 August 2018 the sheriff granted a disqualification order against Stuart for 11 years, again, he did not attend.

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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