A LEYLAND man has been disqualified as a company director for six years and another man for ten years.
Andrew Martin, of Burlington Gardens, and Bruce Tyson Blackburn, formerly of Orchard Street, were disqualified in respect of their conduct as directors of Cinergi Ltd, a network marketing company which traded from Unit 448 Walton Summit, Preston.
The company ceased trading in March 1995 with a total deficiency of £467,076, with trade creditors totalling £136,265 and £77,000 due to Crown departments.
Both men are disqualified from being directors of a company or in any way being concerned in or taking part in the promotion, formation or management of a company for the above periods.
Matters of unfitness relating to both men found by the court were:
That they caused Cinergi to break section 221 of the Company's Act in not maintaining proper accounting records.
That they failed to give sufficient attention to its financial affairs and knowingly caused Cinergi to trade - when there was no reasonable prospect of paying creditor's claims.
That they failed to ensure that Cinergi's property was properly insured against fire and theft in breach of their fiduciary duties.
That they made misrepresentations in the company's July 1994 management accounts.
Mr Blackburn was also found to have provided a materially misleading statement of affairs that from August '94 to March '95 was the sole director and company secretary, contrary to the to section 283 of the Companies Act 1985.
A third respondent, James Lodge, continues to contest the action and proceedings against him were adjourned.
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