Director banned for taking money from Company with Unpaid CCJ’s

madame tussauds served with winding up petition

The sole Director of a broker Company based in Hampshire has been banned as a Company Director.

Kathleen Shepherd from Southampton was the only Director for Shepherd Site Services Limited. The company acted as a broker for waste management services within the construction industry.

The company had gone into administration in November 2019, only 18 months after it had been incorporated. Following concerns over the dealings of the company, the Insolvency Service launched an investigation.

Investigators from the Insolvency service found that the company had been insolvent 7 months prior to its administration. Its debts at that point were in excess of £50,000

Despite creditor concerns, Kathleen Shepherd assured creditors that outstanding invoices would be paid. This in turn caused the creditors to delay Commercial Debt Collection and enforcement action.

The company continued to trade and accrue further debts. Between April 2019 and November 2019, an additional £85,600 of debt was added to 17 suppliers in total.

The company had also notched up 7 Unpaid CCJ’s and had total debts of over £140,000

Despite these large unpaid business debts, Kathleen Shepherd directly (or indirectly) received financial benefit of £76,553. It was also found that she had paid £20,000 to a connected third party.

On 18th May 2021, the Secretary of State for Business accepted a disqualification undertaking from Kathleen Shepherd. She did not dispute that she caused or allowed Shepherd Site Services to trade while insolvent and failed to maintain payments to creditors.

She has been banned from acting as a director for 7 years, meaning she cannot become involved, without the permission of the court, in the promotion, formation or management of a company. Her ban took effect from the 9th of June 2021.

Neil North, Chief Investigator at the Insolvency Service, in a statement said “Directors who put their own personal financial interests above those of customers and creditors damage confidence in doing business and are corrosive to the health of the local economy. This ban should serve as a warning to other directors tempted to act in a similar way; you have a duty to your creditors and if you neglect this duty we could investigate and may lose the privilege of limited liability trading.”


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