Have a question?
033 3772 0409

Legal News

Director disqualified for five years for breach of fiduciary duties (22 February 2016)

Date: 22/02/2016
Duncan Lewis, Legal News Solicitors, Director disqualified for five years for breach of fiduciary duties

The director of a plumbing and heating company has been disqualified for five years for breaching fiduciary duties.

Gary Carcary, 58, from Glasgow was the sole director of BAUR (Scotland) Ltd from July 2011, until the company went into liquidation in July 2014 with an estimated deficit of £38,885.

Insolvency Service investigators found Carcary caused the company to undertake accounting transactions that benefited him – thereby reducing the balance he owed to the company on his overdrawn Directors Loan Account (DLA) to zero.

This resulted in an additional liability of £267,126 to HMRC, at a time when the company had ceased trading.

The company’s accountants said Carcary had advised them it was not his intention to repay the monies owed – and that he intended it to be his remuneration from the company and not a debt.

Carcary was advised that this would create a sizeable PAYE and National Insurance liability payable by the company.

The accountants declared a net bonus of £225,702 to clear the DLA owed, which created a PAYE and National Insurance liability to HMRC of £267,126.

As a result, the company’s financial position became significantly worse and the company had no reasonable prospect of being able to pay the additional liability, as it had ceased to trade.

Carcary gave an undertaking to the Insolvency Service not to act as a director or be involved in the management of a limited company from 19 February 2016.

Commenting on the disqualification, Robert Clarke, Head of Company Investigation at the Insolvency Service said:

“Directors who put their own personal financial interests above those of 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 help themselves first: you have a duty to your creditors – and if you neglect this duty you could be investigated by the Insolvency Service and removed from the business environment.”

Duncan Lewis Business Crime Solicitors

Duncan Lewis business crime solicitors can advise at any stage of a charge involving Insolvency Service investigations – as well as allegations of company fraud, financial fraud, white collar crime, false accounting, phantom companies, embezzlement, investor fraud, online fraud, Ponzi schemes and misrepresentation.

There are Duncan Lewis offices nationwide and a Duncan Lewis business crime solicitor can attend interviews under caution with investigating authorities such as HMRC, SFO, FCA, BIS, Insolvency Service and City of London Police.

For expert legal advice on all business crime charges, call Duncan Lewis business crime solicitors on 0333 772 0409.

For 24/7 help at a police station, call the Duncan Lewis 24-Hour Emergency Helpline on 0333 772 0607.

Call us now on 033 3772 0409 or click here to send online enquiry.
Duncan Lewis is the trading name of Duncan Lewis (Solicitors) Limited. Registered Office is Spencer House, 29 Grove Hill Road, Harrow, HA1 3BN. Company Reg. No. 3718422. VAT Reg. No. 718729013. A list of the company's Directors is displayed at the registered offices address. Authorised and Regulated by the Solicitors Regulation Authority . Offices all across London and in major cities in the UK. ©Duncan Lewis >>Legal Disclaimer, Copyright & Privacy Policy. Duncan Lewis do not accept service by email.