Crime Solicitors

The director of a solar energy company involved in supplying energy efficient insulations has been disqualified for eight years, after an investigation by the Insolvency Service found that he had failed to account for more than £90,000 in assets purchased by his company – and had transferred in excess of £122,000 to his partner, at a time when he knew the company owed a customer money it had received erroneously and had no prospect of repaying.

Andrew Rushton, 47, from Lancashire – the director of a PV Solar Fit Ltd – was also found to have failed to account for more than £82,000 worth of motor vehicles and almost £8,000 worth of other equipment, purchased by the company.

The company had also failed to maintain adequate accounting records and deliver them up to the Liquidator, resulting in other expenditure totalling almost £600,000 remaining unexplained – and the financial position at liquidation regarding debtors and creditors remainded unverified.

Chief Examiner at Insolvent Investigations North, Robert Clarke, said:

“Directors like this – who favour themselves over the interests of legitimate creditors when their company is in financial difficulty and remove funds for personal benefit, leaving suppliers high and dry – are not only in breach of a fundamental fiduciary duty, but lacking in commercial morality.

“What’s more, the failure to maintain records which adequately explain the transactions of the company means that it is not possible to determine whether further funds of a substantial amount have been similarly misused, contrary to creditor interests.
“This disqualification is a reminder to others tempted to do the same that the Insolvency Service will rigorously pursue enforcement action – and seek to remove from them the privilege of trading with limited liability, to protect the public for a lengthy period.”

PV Solar Fit Ltd was incorporated on 6 June 2011 and latterly traded from Venture Court, Metcalfe Drive, Altham Industrial Estate in Accrington, Lancashire as an installer of energy efficient insulations.

Mr Rushton was a director from 6 June 2011 and remained in office as at 3 October 2013, the date of Liquidation.

The Statement of Affairs as at the date of Liquidation showed that PV Solar Fit had an estimated total deficiency of £316,000.

Mr Rushton’s disqualification for eight years was effective from 29 September 2015.

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