Father and Son directors disqualified for five years and three and a half years for running up large Crown debts whilst trading insolvently
FATHER and son directors have been disqualified for a combined eight and a half years for causing and allowing a company to trade while insolvent being at the risk of HMRC and to the father’s benefit.
Robert (63) and Brett Newmark (34) were directors of Rosslyn Hill Limited (trading as Beach Blanket Babylon) and have been disqualified from acting as a company director for five years and three & half years, respectively. The company operated restaurants and bars that traded out of premises in Ledbury Road in West London & Bethnal Green Road in East London.
Although Companies House records showed that Robert Newmark had officially resigned from being a company director on 7 February 2013, he continued to act in the capacity of a director of Rosslyn Hill Limited.
Companies House records further revealed that Robert Newmark was subject to a four-year disqualification from 21 April 2015 and as such, was not allowed to be a director.
Following an investigation by the Insolvency Service, the current disqualifications, from 21 June and 19 July respectively, mean that Robert and Brett Newmark have given undertakings to the Secretary of State to not be a director of a company whether directly or indirectly, or be involved in the management of a company in any way for the duration of their disqualification unless they have permission from Court.
Robert Newmark had advised HMRC back in November 2013 that Rosslyn Hill Limited did not have the funds to pay its outstanding tax liabilities. The company however continued to trade and at liquidation in June 2014, the company’s deficiency was £1,186, 532 of which HMRC were owed £1,021,477 in relation to arrears of VAT, PAYE and National Insurance Contributions. These outstanding taxes date back to November 2013 and continued to increase until liquidation.
The company records show that from November 2013 onwards, Robert Newmark received payments of at least £267,463.
Commenting on the disqualification, Lawrence Zussman a Deputy Head of Investigations with the Insolvency Service said: “These disqualifications sends a clear message to other company directors. Even if you are not a registered director, but act in that capacity, continue to trade when you are aware that your company is insolvent, or if you treat creditors such as HMRC differently to others, then The Insolvency Service will investigate and you run the risk of being removed from the business environment.”