David Field carried on managing his courier business, FDL UK, while he was serving a 4 year ban from being a company director. The business went into liquidation owing creditors almost £400,000.
Although he had officially resigned he was involved in the day to day running of the business. He signed cheques and was responsible for making decisions on redundancies a Court heard.
Prior to the liquidation, David Field went on to transfer the company’s fleet of commercial vehicles to another firm for no money while selling FDL itself for just £4,600. This sounds like what is called a transaction at an undervalue.
Transferring assets for less than they are worth can be very tempting if your business is in difficulty but, in essence, if the business is insolvent and you move assets you are very likely to be running the risk of having these transactions reversed by the liquidator who can claim against the directors personally.
The Department of Business Innovation and Skills (DBIS) launched an investigation and, when questioned, Field said he realised he should not have remained a director.
David Field admitted a charge of breaching his disqualification from acting as a company director. He was ordered to do 140 hours of unpaid community work and to pay £500 costs.
He was disqualified from company directorship for a further eight years.
Judge Paul Glenn told him: “You were disqualified in July 2009. Although you formally resigned on the day of your disqualification, you accept you took control and your wife played no active role.