George Fry (36), from Glasgow, was the sole director and shareholder of Connect Pavers Limited. Incorporated in September 2015, the company carried out domestic and industrial groundwork contracts.
However, just two years later in October 2017, Connect Pavers entered into liquidation following a petition at Glasgow Sheriff Court by the tax authorities for an unpaid bill of more than £140,000.
Insolvency practitioners were tasked with winding-up Connect Pavers but George Fry failed to ensure the company maintained adequate accounting records and as a result, the company could not deliver any records to the liquidator. He also caused Connect Pavers to pay no taxes throughout the two-years the company was in operation.
Further work by the Insolvency Service found that between 18 May 2016 and 3 November 2016 George Fry withdrew £101,100 from the company’s account but because he failed to maintain adequate accounting records, George Fry could not adequately explain whether these transactions were legitimate or not.
On 19 December 2018, at Glasgow Sheriff Court, Sheriff Anwar granted a disqualification order for a period of 7 years.
Effective from 10 January 2019, George Fry is banned from directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company.
Robert Clarke, Chief Investigator for the Insolvency Service, said:
From day one, George Fry had a responsibility to ensure the company maintained proper accounting records and pay the correct levels of taxes. But he failed on both accounts, amounting to a dereliction of duty.
Seven years is a substantial ban, severely restricting George Fry’s activities, and we hope others take heed that we can stop people from running companies if they do not take their directorship duties seriously.
Notes to editors
Mr George Fry is of Glasgow and his date of birth is 19 June 1982
Connect Pavers Limited (Company Reg no. SC516148).
A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:
- act as a director of a company
- take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
- be a receiver of a company’s property
Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings.
Persons subject to a disqualification order are bound by a range of other restrictions.
The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.
Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.
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- February 6, 2019 at 10:38 am by Editor (displayed above)
- February 6, 2019 at 10:38 am by Editor