A meat wholesaler from Manchester has been given a six-month sentence, suspended for two years, for failing to provide the liquidator with company books and papers.
72-year-old Roy Hayes, director of RH Wholesale Limited, was given a four-year disqualification and ordered to pay £3,600 and a £15 victim surcharge at Manchester Magistrates Court on April 22.
RH Wholesale, which traded as a meat wholesaler, entered liquidation in August 2016 with outstanding debts owed to creditors worth more than £92,000.
Hayes was required to deliver the company’s books and records to the liquidator but he failed to do so. He blamed this on having left the paperwork at the RH Wholesaler trading premises before the landlord disposed of them.
The landlord denied this claim and without the company records, the liquidator was unable to verify what happened to the company’s assets or confirm the accuracy of the company’s balance sheet.
Hayes accepted a six-year director disqualification in January 2018, but due to the criminal nature of his misconduct was later charged with one count against the Insolvency Act 1986.
Julie Barnes, chief investigator for the Insolvency Service, said:
“All company directors have legal responsibilities when going through insolvency procedures, including delivering up company books and records, and it was Roy Hayes’ obligation that he dutifully carried them out.
“However, Roy Hayes flagrantly disregarded his duties and his sentence should serve as a warning that we will investigate and prosecute such offenders and bring them to justice.”