Transtec directors disqualified for 42 years

11 Aug 2006 04:45 PM

Former directors of the TransTec group have been banned from being company directors for a total of 42 years following an investigation by the Companies Investigation Branch (CIB) of The Insolvency Service.

Eight directors intentionally produced and signed off misleading or false accounts for the former engineering and manufacturing group, which produced cylinder heads for the car industry. Its directors consistently failed to declare a settlement worth millions pounds in the company's accounts which allowed the TransTec group to present a false picture of the company's financial status to groups such as the company's auditors, board of directors, creditors, shareholders and the Stock Exchange.

As well as the lies, deception and cover up, CIB's investigation revealed that TransTec's directors had deliberately concealed the company's true financial position; bad management by top executives who were unsuited to their roles in an engineering firm and a Board of directors who failed to grasp what was happening and change the management.

Seven of the eight directors agreed in out of court settlements that their conduct as directors had been unfit and received
disqualification periods which will prevent them from being involved in the management, formation or promotion of a company for periods of between three years to nine years. The remaining director was disqualified for nine years and six months after a court hearing.

Notes for Editors

1. The following directors of TransTec group have been disqualified:

Surname First Names Disqualification Effective Order or Period from Undertaking

Carr Richard Gordon 9 years 6 months 11 August Order Granville 2006

Jeffrey William Andrew 9 years 8 February Undertaking 2006

Parkin Richard 4 years 6 months 21 Undertaking December
2004

London Philip Ronald 3 years 6 months 17 June Undertaking 2005

Sartorius Anthony Edouard 6 years 6 months 23 June Undertaking 2005

Snazell Christopher 3 years 17 June Undertaking William Edge 2005

Summerfield Peter 3 years 6 months 16 Undertaking November
2004

Munday Peter 3 years 11 Undertaking November
2004

2. Criminal proceedings were taken against Carr and Jeffery in relation to their roles with the TransTec Group. Their trial and details of the outcome can be found on the SFO's website at www.sfo.gov.uk/news/prout/pr_457.asp?id=457 . CIB's inspectors' report of the investigation into TransTec can be viewed at www.insolvency.gov.uk/cib.

3. Section 8 of the Company Directors Disqualification Act 1986 allows the Court to make a disqualification order of up to 15 years for unfit conduct. On 2 April 2001, amendments were introduced by the Insolvency Act 2000 allowing directors, with the agreement of the Secretary of State, to avoid the need for a Court hearing by offering an acceptable disqualification undertaking. This has the same legal effect as a disqualification order made by the Court and usually includes a schedule identifying the director's unfit conduct. The consequences of breaching a disqualification undertaking are the same as those for breaching a disqualification order.

4. Contravention of a disqualification order or a breach of a disqualification undertaking is a criminal offence and may result in a fine or imprisonment for up to two years. Information relating to persons acting in contravention of this provision should be passed on to The Insolvency Service Enforcement Hotline on 0845 601 3546.

5. 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.

6. The Insolvency Service also carries out confidential enquiries on behalf of the Secretary of State for Trade and Industry, through Companies Investigation Branch. The Service also authorises and regulates the insolvency profession; 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 is available from www.insolvency.gov.uk