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Director disqualified for transferring company assets to himself

Posted: 8th June 2016   In: Corporate Commercial

A director has been disqualified for five years for transferring money from his insolvent company to himself and his associates.

James Elliott Pemble ran a marquee hire business called All Marquees Ltd at Tonbridge in Kent. He also had at least three other companies in the leisure and entertainment industry.

An investigation by the Insolvency Service (IS) found that he had withdrawn at least £144,427 over a two year period. None of the transfers had any apparent benefit to All Marquees Ltd, at a time when the company was insolvent. Most of the money was used to fund Mr Pemble’s other businesses.

Andrew Stanley, Official Receiver Chatham at The Insolvency Service, said: “A director owes a fiduciary duty to a company to act in its best interest, rather than for their own personal benefit.

“Mr Pemble chose to use company funds for his own personal benefit and that of his other business entities at a time that All Marquees Ltd was insolvent. He demonstrated a disregard to All Marquees Ltd’s own creditors who have suffered as a result of his actions.

“Directors should note that the Insolvency Service will take appropriate action to remove them from the business community when their conduct falls below the standard expected and results in the company being subject to a compulsory liquidation.”

Please contact Sarah Liddiard if you would like more information about the issues raised in this article or any aspect of company law.

Posted by: Sarah Liddiard
Corporate Commercial
Luton Office