A director has been banned from running a company for eight years after accepting more than £300,000 in deposits for home improvements work that was never completed. Samantha Fairweather, 53, was the sole director of Fairweather Construction Ltd when it sought advice from an insolvency practitioner in April 2022, owing more than £100,000 in unpaid tax.
The company had taken deposits from homeowners worth more than £150,000 by this time for building work such as the installation of new windows or conservatories which it had not finished. However, Fairweather Construction then proceeded to take a further £177,900 in payments for further building projects it did not complete, including £37,370 in deposits for new work, before it was liquidated in the autumn of 2022.
Directors of companies facing financial difficulties have a duty to act in the best interests of creditors when the company is insolvent or nearing insolvency. This means they must not continue trading if there is no reasonable prospect of avoiding insolvency, and they must not take actions that worsen the financial position of creditors. Directors who ignore these obligations, such as by accepting new payments for work they cannot deliver or misusing funds, can face severe penalties, including personal liability for company debts, fines, and disqualification from holding directorships.
Neil North, Chief Investigator at the Insolvency Service, said: “Samantha Fairweather knew, or ought to have known, that the company she was a director of had unpaid debts to HMRC and had been unable to fulfil its obligations to existing customers. The company then took significant amounts of money from homeowners for house extensions and projects which were never done. Members of the public need protection from this kind of activity which is why Fairweather will no longer be able to act as a company director until October 2032.”
Fairweather Construction entered liquidation in September 2022 with liabilities of more than £700,000. The Secretary of State for Business and Trade accepted a disqualification undertaking from Fairweather, and her eight-year ban began on Monday 21 October. The disqualification prevents her from becoming involved in the promotion, formation or management of a company, without the permission of the court.
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