A former director is serving a 7-year disqualification sentence for failure to keep adequate company records
John Thomas Hanbury, 63, faces the following repercussions for failing to keep adequate company records during his time as a director: sentenced to 8 months imprisonment, suspended for 12 months, and 150 hours of community work.
Hanbury had been appointed director of Crownsbury Ltd in 2016. The company began operating a payroll processing bureau. The business went into administration in July 2016 but Mr. Hanbury failed to provide adequate accounting records to the Joint Administrators.
Investigations by the Insolvency Service found various large payments could not be properly verified or explained, and in August 2018 John Hanbury was disqualified as a director for 7 years.
Prior to this Hanbury had been found guilty of assisting in the supply of controlled drugs and received a suspended sentence which was still in force for this prosecution.
Hansbury’s existing disqualification undertaking runs to 2025, which means he cannot, directly or indirectly, be involved in the promotion, formation, or management of a company without the permission of the court.
Mr. Hanbury’s sentence clearly demonstrates that if directors fail in their duties, they will be investigated by the Insolvency Service and could lose the privilege of limited liability trading or ultimately risk facing criminal prosecution.
About the author
Iain heads the firm’s commercial litigation department.
Iain has over 28 years of experience in Commercial Debt Recovery having worked in both Private Practice and Industry and has extensive experience working across all industry sectors and has particular expertise in working with Insolvency Practitioners in advising and recovering outstanding insolvent companies ledgers.
Iain brings a pragmatic and commercial approach to recovering debts.
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