HYNDBURN businessman Paul Mulligan has been banned from being a director for five years after his company collapsed with debts of more than £220,000.
He was a director of painters and decorators PD Industrial Contractors Limited in Warner Street, Accrington, which went into liquidation in July 1999.
The order was made by Blackburn County Court which found that Mr Mulligan, of Fernlea Drive, Clayton-le-Moors, had operated a policy of non-payment of money due to the Crown.
A series of matters of Mr Mulligan's unfit conduct found by the Court included:
Non-payment of VAT, PAYE, tax and National Insurance contributions.
Failure to maintain, deliver or preserve adequate accounting records.
Non-co-operation with the Liquidator following his purchase of PD's assets.
The disqualification order made by Blackburn County Court prevents Mr Mulligan from being a director of a company for five years. It also bans him taking part in the promotion, formation or management of a company for the same period.
Failure to abide by the court's order could lead to Mr Mulligan facing a heavy fine and a prison sentence of up to two years.
The Insolvency Service said PD Industrial Contractors had been in arrears with VAT liabilities since December 1996.
While the company's liabilities to the Crown were increasing, a £9,000 debt due to Mr Mulligan's associated business had been cleared. A bank debt of £46,650, guaranteed by his mother-in-law, had also been cleared.
The liquidator had been unable to satisfy himself that he was aware of all debts due to PD or to account for the apparent discrepancy in sales of almost £10,000.
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