Son joins father on banned directors’ list

A LANCASHIRE company director has been disqualified from being a company director for eight years for allowing his father – who was a banned director – to manage a mortgage business.

Matthew Richard Sixsmith of Whittle le Woods in Lancashire was disqualified at a hearing at Bolton County Court following an investigation by the Company Investigations North team of The Insolvency Service.
 
The case related to Bridgewater House UK Ltd, a mortgage broker, which was placed into liquidation in September 2009 owing creditors £317,437.

The court found that Mr Sixsmith, 31, had allowed his father Richard Sixsmith, from Bolton, to act in the management of Bridgewater House UK Limited. despite Mr Sixsmith senior having already been disqualified for a period of five years in April 2005 relating to his misconduct in The Mortgage Practice Ltd.

Furthermore, Matthew Sixsmith llowed his father to act as a director of the company in all but name, despite having already given an undertaking to the Office of Fair Trading (OFT) that he would not allow his father to act while disqualified.

Although Matthew Sixsmith did not attend the hearing and offered no evidence in his own defence, the court heard he had confirmed to OFT investigators in 2008 that he was aware of his father’s disqualification.

Prior to his son’s disqualification, Richard Sixsmith had already signed a further undertaking to the Secretary of State for a period of 12 years in respect of his conduct in the management of Bridgewater.

Commenting on the case, Claire Entwistle, director of Company Investigations North said: “In this case the directors attempted to circumvent the disqualification by a client and brokerage referral system.

“Directorship is not defined solely by the names listed at Companies House, it is the actions in respect of the company that define who is acting as director.

“Where disqualified directors continue to manage the affairs of a company, they will find that the protection of limited liability is not given to them and they may be criminally prosecuted . Likewise The Insolvency Service will act robustly against those who allow disqualified directors to act .”