A Yeovil man has been disqualified from holding directorships and take part in company management for six years.Derek James Lowe of 53 Stiby Road, Yeovil, was disqualified on July 22nd 2002 because of his conduct as a director of Elmore Projects Ltd.
The building and construction company, which operated from Wellingborough in Northampt-onshire, failed with total debts of around £985,000 according to The Insolvency Service (TIS).
A press notice from TIS stated: "Elmore Projects Ltd went into administrative receivership on May 12th 2002. The Secretary of State accepted the disqualification undertaking based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed by Mr Derek James Lowe."
Among reasons listed for the disqualification was that Mr Lowe should have known the company was insolvent no later than October 1999 when the company was struggling to settle amounts to its creditors.
The notice also says: "On October 29th 1999, Smee Timber Ltd, a creditor of the company, issued proceedings against the company. Mr Lowe caused Elmore to continue trading and incur further liabilities to the detriment of its creditors.
"The Aged Creditor Analysis for the month of May 2000 prepared by the company shows Elmore incurred liabilities of at least £192,376 within 90 days of May 2000 and a total sum of £287,975 owed to creditors for more than 90 days."
In addition, the notice states: "Mr Lowe allowed Elmore to improperly operate a construction industry tax deduction scheme, whereby the company failed to deduct tax from several sub-contractors who The Inland Revenue could not trace as holding a valid exemption certificate (known as a 714 certificate).
"Elmore made gross payments to these sub-contractors and failed to deduct and pay over a total sum of £552,390 for 1997/98 and a further £142,505 for 1998/99 to The Inland Revenue."