Ban for payroll company boss who failed to keep proper records
The director of a payroll processing company has been disqualified for 7 years after failing to ensure the company kept proper books and records.
On 4 January 2016 John Thomas Hanbury was appointed a director of Crownsbury Limited, before the company operated a payroll processing bureau, which it had not done prior to his appointment.
However, the company entered into Administration on 18 July 2016 and the Insolvency Service’s subsequent investigation found that between 4 January and 18 July 2016, John Hanbury failed to ensure Crownsbury maintained and/or preserved adequate accounting records.
He also failed to deliver adequate accounting records to the Joint Administrators when required to do so. As a result, it has not been possible to verify what the company’s income and expenditure was after 3 May 2016 – the date its bank account was closed.
Further investigations found that it was not possible to determine the reason for receipts totalling £7,849 received between 24 March 2016 and 8 April 2016 into Crownsbury’s bank account from a connected company, of which John Hanbury is a director, as well as determining the reason for a receipt of £520,000 into Crownsbury’s bank account on 15 April 2016.
There were numerous other payments out of the company’s bank account for which no proper explanation or verification could be found.
As a result, on 7 August 2018, the Secretary of State accepted a disqualification undertaking from John Hanbury, after he did not dispute that he failed to ensure the company maintained and/or preserved, or alternatively following administration, deliver up adequate accounting records to the Joint Administrators.
His ban is effective from 28 August 2018 and lasts for 7 years.
Anthea Simpson, Chief Investigator for the Insolvency Service, said:
Directors have a duty to ensure their companies maintain proper accounting records, and, following insolvency, deliver them to the office-holder in the interests of fairness and transparency.
Without a full account of transactions it is impossible to determine whether a director has discharged his duties properly, or is using a lack of documentation as a cloak for impropriety.
Notes to editors
John Thomas Hanbury is of Shipley, West Yorkshire and his date of birth is June 1958.
Crownsbury Limited was incorporated on 30 March 2001 (Company Reg no. 04191092).
A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:
- act as a director of a company
- take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
- be a receiver of a company’s property
Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings.
Persons subject to a disqualification order are bound by a range of other restrictions.
The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.
Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.
Contact Press Office
Media enquiries for this press release – 020 7674 6910 or 020 7596 6187
The Insolvency Service
4 Abbey Orchard Street
Media Manager 020 7596 6187
This service is for journalists only. For any other queries, please contact the Insolvency Enquiry line on 0300 678 0015.
For all media enquiries outside normal working hours, please contact the Department for Business, Energy and Industrial Strategy Press Office on 020 7215 1000.
You can also follow the Insolvency Service on:
Latest News from
30-year sentence for solar panel fraudsters12/10/2018 09:10:00
Six men have been sentenced for a total of just over 30 years for their part in a £17 million solar panel fraud scheme.
£4 million of false invoices lands financing boss 10-year ban08/10/2018 16:05:00
Boss of a financing company receives ten year ban after heading false invoice scheme to secure £4 million of illegitimate funds.
Security systems boss jailed for defrauding creditors05/10/2018 17:09:00
Director of a company that manufactured security systems receives a two year prison sentence for defrauding his creditors to the tune of £600,000.
Insolvency Service celebrates customer services excellence03/10/2018 09:10:00
As part of National Customer Service Week, the Insolvency Service is celebrating the hard work of staff delivering excellent customer service to the public.
Waste boss banned for failing to explain £500k of cash withdrawals and bank transfers25/09/2018 15:10:00
Former waste disposal boss has been disqualified for 7 years after failing to deliver company records that may have explained £500,000 worth of suspicious bank transfers and cash withdrawals.
Health supplement company closed for taking advantage of customers11/09/2018 09:43:00
Healthcare supplement company ordered into liquidation in the High Court after it was found to have taken advantage of elderly and vulnerable customers.
Debt management boss joins husband on disqualified director list10/09/2018 09:20:00
Court orders debt management boss to join husband on disqualified director list for failing to properly manage clients’ funds.
7-year ban for director of disability ramp company07/09/2018 15:10:00
Director of a company that installed disability ramps across South Wales has been disqualified for providing inaccurate information to HMRC.