Former energy firm boss accepts eight year ban

A LANCASHIRE businessman has agreed to an eight-year disqualification over his poor conduct in running an energy efficiency company.

Andrew Rushton, 47, ran PV Soar Fit based on the Altham Industrial Estate, Accrington, from 2011 until it went into liquidation in 2013 owing creditors more than £300,000.

An investigation by The Insolvency Service found that Mr Rushton had failed to account for more than £90,000 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 in error  and had no prospect of repaying. The customer in question had notified him of the erroneous payments.

Furthermore, in addition to failing to account for more than £82,000 worth of motor vehicles almost £8,000 worth of other equipment , purchased by the company, the company’s failure to maintain adequate accounting records and deliver them up to the liquidator, resulted in other expenditure totalling almost £600,000 remaining unexplained, and the financial position at liquidation regarding debtors and creditors remaining unverified.

Robert Clarke, chief examiner at Insolvent Investigations North 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.”

Clarke said the disqualification should be areminder to others tempted to behave in a similar fashion that the Insolvency Service will “rigorously pursue ” them and take action.