M&E director disqualified for seven years for siphoning cash
31-year old Melanie Day has been disqualified from managing, directing or in any way controlling a company until November 2019, after siphoning off payments from an insolvent firm.
An investigation found that S.T.S. Building Services Ltd was making payments to Ms Day and her sole trader business, at the expense of creditors, at a time when Ms Day knew the firm was insolvent.
The Judge confirmed that between 3-4 June 2010, Ms Day transferred £100,000 from STS into her sole trader business, claiming it was a sub-contractor, and to herself.
Ms Day, of Ebbw Vale, claimed the money was a bonus, but then told the Insolvency Service it was a repayment of her director’s loan – but no evidence was found of the alleged £80,000 investment in STS.
The firm entered administration on 22 March 2010. Ms Day had been a director since April 2007.
Insolvency Service company investigations north director Claire Entwistle said: “This disqualification Order represents a successful conclusion to the investigation resulting in Melanie Day being banned from being involved in the management of any company for several years.
“The outcome of this case should serve as an important reminder - unacceptable conduct by company directors can result in lengthy periods of disqualification.”
Disqualification orders prevent people acting as directors, taking part in the promotion, management or formation of companies, acting as liquidator or administrator, or receive and manage company property.