Rochdale Director Disqualified After Failure of Todmorden Business

The director of a recycling machinery business which failed with total debts estimated at around £251,000 has given an Undertaking not to hold directorships or take any part in company management for three and half years.

The Undertaking by Joseph Kevin Hoyle, aged 28, of Carrington Close, in Rochdale was given in respect of his conduct as a director of CW Recycling Machinery Sales Limited which carried on business from premises at Richmond Mill, Deardale Street, in Todmorden.

Acceptance of the Undertaking, on 11 May 2004, prevents Mr Hoyle from being a director of a company or, in any way, whether directly or indirectly, being concerned in or taking part in the promotion, formation or management of a company for the above period.

CW Recycling Machinery Sales Limited was placed into compulsory liquidation by order of the Halifax County Court on 8 April 2003 on the petition of the Joint Supervisors of its Company Voluntary Arrangement which was entered into on 4 July 2001. The company has an estimated total deficiency of £250,902.

The Official Receiver at Leeds had conduct of the investigation and disqualification procedure.

Matters of unfit conduct, not disputed by Mr Hoyle, solely for the purposes of the Undertaking, were that he:

Caused the company to fail to comply with the terms of the Company Voluntary Arrangement dated 4 July 2001 to the detriment of the Crown and, in addition, he caused the company to undertake transactions to the detriment of the creditors generally.

The Insolvency Service, on behalf of the Secretary of State for Trade & Industry, has responsibility (under Section (6) of the Company Directors Disqualification Act 1986) for the investigation of the conduct of directors of failed companies and for the disqualification of those who are considered to be unfit to be involved in the management of companies in the future.