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Syncro Limited: three directors disqualified for total of 20 years

Government Communications (NDS)

1 July 2011

Kevin Francis Herbert Maxwell, 52, of Park Lane, London, David Dawson, 61 of Cheadle, Staffordshire and David Gordon Maclean, 47 of Simonstone, Lancashire each offered company director disqualification undertakings, the last of which was accepted on the first day of what was listed as a 15 day trial in the High Court, London. The undertakings mean they are each banned from managing or in any way controlling a company or being directors for the duration of their disqualifications.Maxwell and Dawson are each disqualified for eight years and Maclean for four-and-a-half years. Dawson’s disqualification commences on 24 June 2011 and Maxwell and Mclean’s 8 July 2011.The disqualifications were sought following an investigation by The Insolvency Service which found that the directors had inappropriately managed the business affairs of Syncro Limited. This company had two divisions: a construction arm which operated as either the lead contractor or in certain instances as a sub-contractor on construction and renovating works; and a facilities management division, engaged in the ‘hard’ maintenance of sites. This side of Syncro operated essential maintenance of heating, electrical, refrigeration and other services at various sites. Additionally, this division was involved in the installation and accreditation of electrical cabling at a number of sites. The Insolvency Service investigation revealed that:Payments were made to connected companies, in which the directors had an interest, to the detriment of creditors and at a time when Syncro was insolvent; In the case of Mr Maxwell and Mr Dawson, 11 such payments were made totalling £2,007,500 between 30 January 2007, when they acquired control of the company, and 24 July 2007 when the company went into Administration.; five of these 11 payments, totalling £933,000, were made during Maclean’s four-month directorship up to 21 May 2007; As a result of Maxwell and Dawson’s failure to maintain and/or preserve accounting records it has not been possible to ascertain the purposes of six further payments totalling £375,875 were also made by Syncro. Five of these 6 payments totalling £304,875 were made while MacLean was a director. Commenting on the case, Tony Wilkin, The Insolvency Service’s Director of Intelligence and Enforcement said:“This was a serious case in which creditors were denied access to significant sums, combined with a disregard for the directors’ duty to keep records of the company’s transactions. The disqualifications should serve as a reminder; The Insolvency Service will investigate unacceptable conduct by company directors and any consequential enforcement action may result in lengthy periods of disqualification as the directors of Syncro have found out.” Ends ______________________________________________________________