Director of insolvent company banned for seven years

Blog Insolvency Liquidation

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A director of a used car dealership has been disqualified for seven years after racking up liabilities of more than £500,000.

The Insolvency Service said the director of Marshalls of Kilmarnock, Kevin Vincent McMonagle, had caused the company to trade in a manner which breached consumer protection legislation, causing a loss to customers in the region of £95,000.

The car dealership was placed into compulsory liquidation in January 2016 with liabilities of £544,309.

Trading Standards had received 36 complaints from customers about Marshalls from June 2014, resulting in quantifiable losses to 17 customers of about £95,000.

The company ceased trading on 28 April 2015 after its license to sell second-hand cars was revoked.

Mr McMonagle was also disqualified from acting as a director of a company for seven years.

Robert Clarke, Head of Company Investigation at the Insolvency Service said: “When directors of a company do not comply with legislation that is designed to protect customers, and avoidable losses result, the Insolvency Service will fully investigate the circumstances and take action where appropriate.

“In this case, a significant number of customers have been left out of pocket thanks to Mr McMonagle’s disregard of protective legislation and it is appropriate that their disqualification is for a significant period of time.

“This ban should serve as a reminder to any directors tempted to do the same: the Insolvency Service will vigorously investigate you and seek to remove you from the marketplace.”