21 Feb 2008 01:08 PM
Court orders rogue builders to close

INSOLVENCY SERVICE News Release (Ins/Coms/62) issued by The Government News Network on 21 February 2008

Six construction companies have been wound up in the High Court following an investigation by Companies Investigation Branch (CIB) of the Insolvency Service.

The companies were found to be inter-related and the investigation also revealed serious concerns that three of the companies were controlled by Mr Mark Edward Dixon, an undischarged bankrupt (see note 7 below). All were found to have inadequate accounting records and a complete lack of commercial probity.

Residential building work was obtained by advertising on the internet and approaching potential customers who had applied to local authorities for planning permission. A building contract price would be agreed, and a sizable deposit taken. Work would then be started but then deliberately abandoned.

In ordering the companies into liquidation Mr Registrar Simmonds stated that: "the evidence in these cases and the matters complained of show a strong prima facie case to wind up the companies in the public interest, notably the cold calling and direct approach of people who had applied for planning permission. Deposits would be taken, a minimal amount of work done and they would then disappear. The interaction of the companies is designed for the benefit of the directors, Mr Dixon in particular, without any regard for commercial probity".

Notes to Editors:

1. Crestmere Construction Limited was incorporated on 22 August 2005. The registered office of the company is at 130 Aztec, Aztec West, Bristol, Avon, BS32 4UP. The sole recorded director of the company is Mr Kevin Comiskey. The secretary is HCS Secretarial Limited.

2. Dovestone Construction Limited was incorporated on 1 September 2006. The registered office of the company is at 9 Great Meadow Road, Bradley Stoke, Bristol, BS32 8EG. The sole recorded director of the company is Ms Laura Milburn. The secretary is HCS Secretarial Limited.

3. Construction Management Development Limited was incorporated on 21 April 2005. The registered office of the company is at Suite F, City Business Centre, Llanthony Road, Gloucestershire, GL2 5JH. The sole recorded director of the company is Mr Matthew Lee Higgins. The secretary is HCS Secretarial Limited.

4. CMD Construction Services Limited was incorporated on 15 November 2006. The registered office of the company is at Suite F, City Business centre, Llanthony Road, Gloucester, GL2 5JH. The sole recorded director of the company is Mr Matthew Lee Higgins. No secretary is shown.

5. Protectioncoat Developments Limited was incorporated on 15 November 2006. The registered office of the company is at 5 Campbell Court, Kingsweston Lane, Bristol, BS11 OLF. The sole recorded director of the company is Mr Alan Holiday. The secretary is HCS Secretarial Limited.

6. Crestmere Developments Limited was incorporated on 27 April 2006. The registered office of the company is at The Quadrant, Aztec West, Almondsbury, Bristol, BS32 4AG. There are no current recorded officers of the company.

7. Mr Dixon was made bankrupt on 8 January 2004, previously having been made bankrupt on 8 March 1995. By virtue of his bankruptcy he is presently precluded from being concerned directly or indirectly in the management of a company without leave of the court until 1 April 2009.

8. In November 2006 Mr Dixon was sentenced to 9 months imprisonment in proceedings brought by Gloucestershire County Council to prevent him from continuing to contravene the Supply of Goods and Services Act 1982 and Misrepresentation Act 1967. For more information see: http://www.tradingstandards.gov.uk/cgi-in/glos/newsitem.cgi?file=prss0361.txt

9. The petitions to wind up the six companies in the public interest were presented on 25 October 2007 under the provisions of section 124A of the Insolvency Act 1986 following confidential enquiries carried out by Companies Investigation Branch (CIB) under the provisions of section 447 of the Companies Act 1985, as amended.

10. All six companies were put into provisional liquidation on 1 November 2007 to protect the assets and financial records of the companies pending determination of the petitions. The companies were then ordered into liquidation on 20 February 2008.

11. Companies Investigation Branch, part of the Insolvency Service, carries out confidential enquiries on behalf of the Secretary of State for Business, Enterprise & Regulatory Reform (BERR).

12. 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. 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.

13. All public enquiries concerning the affairs of the companies should be made to: The Official Receiver, Public Interest Unit North, PO Box 326, Boulton House, 17-21 Chorlton Street, Manchester, M60 3ZZ, Tel No: 0161 934 4182. Email: piu.north@insolvency.gsi.gov.uk

14. Further information about the work of The Insolvency Service is available from http://www.insolvency.gov.uk