Company directors beware: Deception can lead to disqualification

By September 3, 2014Commercial Law

build site

Last week two businessmen were sentenced at Winchester Crown Court for fraud and safety offences. The Department for Business Innovation and Skills (BIS) and the Health and Safety Executive brought joint proceedings against the pair after a worker died due to a lack of safety checks on a crane being used at a building site.

In September 2010 a two-tonne metal sand moulding box fell from a crane onto the 40 year old worker, crushing him to death. The Health and Safety Executive’s investigation found that not only had the crane not been checked properly, but the workers were also being exposed to a dangerous amount of lead.

Investigations also found that one of the directors had issued cheques totalling £92,500, all of which had bounced, and even continued to act as a director despite two court orders disqualifying him.

The directors were subsequently found guilty under the Health and Safety of Work Act 1974 and Fraud Act 2006 and also found to have breached section 13 of the Company Directors Disqualification Act 1986. Both were disqualified from being company directors, for 15 and 7 years respectively.

More information on this case can be found here: http://press.hse.gov.uk/2014/disqualified-director-and-accomplice-sentenced-over-worker-death-and-company-deception/

 

Amarjit Atwal, Paralegal

aatwal@astonbond.co.uk