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OnTax Accountant In Dunfermline Discuss:

Banned! For Taking His Own Money Back.

When Is A Directors Money Not His To Take?
This Shocking Case Has Lessons For All Directors.

Why Was A Director Of A Company Banned For Taking His Own Money Back?

Accounting Question

OnTax Accountant In Dunfermline has learned that a recent case went before officials at Companies House. Roger Dyson (U.K) Limited (which was involved in the manufacture of recovery vehicles) went into liquidation as its director, Roger Dyson, started to repay himself an amount of money that he had previously invested in the company by making an unsecured loan to the company in July 2008.

OnTax Accountant In Dunfermline has also discovered that on December 1st, 2008, nearly two months before the company had officially went into bankruptcy, Roger Dyson repaid himself almost £500,000 from the company ahead of other creditors. OnTax Accountant In Dunfermline was also informed that the High Court in Birmingham banned Roger Dyson from being the director of the company for five years.

The ban shall now prevent Roger Dyson from being the supervisor, organizer and the director of any limited company until 2018. The Insolvency Service was allowed to investigate and explore the case as soon as Roger Dyson was disqualified. According to the Insolvency Service, Roger Dyson had repaid himself nearly £500,000 from an unsecured loan that he himself had made in July that same year. OnTax Accountant In Dunfermline has also learned that further investigations showed that he had made repayments ahead of the other creditors of the company, clearly indicating that he was benefiting himself before the business would officially enter liquidation. OnTax Accountant In Dunfermline has learned that this in turn increased the overdraft of the entire company to nearly £1 million.

Consider All Creditors Not Just Some

The report shows that the company terminated all its trade on 14th January, 2009 and voluntarily went in to liquidation a month later on 4th February, 2009 with loses of more than £1.3 million. OnTax Accountant In Dunfermline has discovered that now that the five-year disqualification has officially been handed down by the High Court in Birmingham, Roger Dyson, 62, who had been acting as the director of the company long before 14th November, 1991, would no longer be able to have any authority over the Roger Dyson (U.K.) company for at least five years.

OnTax Accountant In Dunfermline has also learned that until then he would not be permitted to act as a member of the company or be able to monitor the situation of the company. This is a stark reminder to directors that a limited company is a separate legal entity and that directors cannot raid the companies funds at will without consideration for other creditors also.

Follow Correct Liquidation Procedure

Blog Advice

Robert Clarke, who acted as the Head of the Company Investigations in Birmingham openly shared his views about Roger Dyson being banned from being a director. OnTax Accountant In Dunfermline has had it revealed to them that Mr Clarke said that directors who try to benefit themselves as soon as the company starts to go bankrupt, do not care about their business and ignore the entire community that is involved in the company.

OnTax Accountant In Dunfermline also found that Clarke stated that this entire disqualification scenario shall set an example for other directors and if they try to take the similar path that harms those involved in the business then they shall be investigated by the Insolvency Service and will be disqualified if necessary.