Construction News

Mon August 02 2021

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Yorkshire builder sentenced for breaching bankruptcy terms

6 Jul A builder from Pontefract has been given 12 months community order and ordered to do 150 hours of unpaid work after acting as director while bankrupt.

Steven Bernard Kerrigan, 59, was pursued by the Insolvency Service for continuing to act as a director of his company, Steven Homes Building Contractors Limited, despite being bankrupt.

Steven Homes Building Contractors Limited (SHBC) was incorporated in August 2008. In October 2011, Kerrigan was made bankrupt, although he continued as director of SHBC, which was an offence under the terms of his bankruptcy.

In February 2017, Kerrigan dissolved his company, at which point he was required to inform all creditors. Companies House contacted Kerrigan on multiple occasions for details of creditors he had contacted. Kirklees Magistrates Court heard that this did not happen, leaving any creditors unable to pursue SHBC for funds owed. His accountant, who was owed more than £2,000, did not find out until June 2017.

Companies House referred him to the Insolvency Service for a criminal investigation. Kerrigan pleaded guilty to acting as a company director while bankrupt, and failing to inform creditors when he dissolved his company.

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He was sentenced to a 12 month community order and 150 hours of unpaid work at Kirklees Magistrates Court on 22nd June 2021. He has also been disqualified as a company director for two years, meaning that he cannot directly or indirectly become involved, without the permission of the court, in the promotion, formation or management of a company.

Julie Barnes, chief investigator at the Insolvency Service, said: "Steven Kerrigan was an experienced company director and was aware of the restrictions his bankruptcy came with. Despite this, he failed to follow the rules and left a firm out of pocket when he refused to tell them about the striking off application, threatening to bump them when they refused to provide further services.

"We work closely with our partners to find unscrupulous directors and will always pursue prosecutions against company directors where they fail to meet the standards expected of them."

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