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Disqualified Stourport directors fined
2:37pm Monday 25th February 2013 in News
A FATHER and son from Stourport have been given suspended sentences of six months and fines of £2,500 each for acting as directors of a company while disqualified.
Michael Jones, 69, of Elan Avenue, and Martyn Jones, 43, of St John’s Road, acted as directors of M and D Boat Building and Engineering Limited from October 21, 2009 to October 20, 2010 while being undischarged bankrupts, prosecutor Roger Faber told Kidderminster Magistrates Court.
Mr Faber told the court that when the defendants filed for bankruptcy in September, 2009 they were both “well aware” of the disqualification as they were provided with a detailed document.
He added that both appointed their wives as directors of the company but people continued to deal with the defendants throughout, which was contrary to the Company Directors Disqualification Act 1986.
Defending solicitor Andrew Wakeman told the court that the Joneses’ bankruptcy was not down to their own financial mismanagement, fraud or dishonesty.
He said that the company, which began as a general steel works firm, worked in partnership with the Severn Valley Boat Centre from 2004. He added that the centre ran into financial difficulties and went into liquidation in 2008, owing the Joneses £37,000.
Mr Wakeman said that due to demands from the bank and Her Majesty’s Revenue and Customs, the Joneses were left with “no choice” but to declare themselves bankrupt.
The Joneses accepted that they continued to do the same roles they had done before and that they had not sought permission from the court.
Mr Wakeman added that the company had now been taken over by Stourport Canal Craft and both defendants worked within the firm but not as directors.
He said the father and son had suffered significantly and had “effectively lost everything.”
The Joneses were given the suspended sentences providing neither committed an offence over the next year, a £2,500 fine each, 100 hours of unpaid community work and were both disqualified from being company directors for five years.