Bankrupt insolvency practitioner sanctioned for negligence

A former insolvency practitioner has had bankruptcy restrictions extended after an investigation found she had been negligent when acting as the liquidator of a limited company.

Gagen Dulari Sharma was a director of Sharma Associates for 13 years until she resigned last year ahead of a bankruptcy order.

She has now given an eight year bankruptcy restrictions undertaking which prevent her from acting in the management of a limited company and acting as an insolvency practitioner.

An investigation found that after being appointed liquidator of a limited company in September 2011, negligence by Sharma resulted in a significant liability to creditors of the company totalling £625,236. It also “materially contributed” to Sharma’s bankruptcy.

Gerard O’Hare, the Official Receiver for Nottingham, believes the restrictions “should act as a deterrent to others”.

He said: “The Insolvency Service will take firm action when we find that qualified professionals, who subsequently become bankrupt, have acted negligently in carrying out their duties.

“In this case, Ms Sharma’s negligence in carrying out her duties as an Insolvency Practitioner has caused a loss to the creditors of a liquidated company amounting to in excess of £625,000.”