Banned director given additional 14-year disqualification

A director of a London based construction company, who was previously disqualified, has been banned for 14 years after continuing to run the company, along with his mother who has been given an eight-year ban

Robert Murphy was disqualified from acting as a director for a period of four years from  September 2011, but an investigation by the Insolvency Service discovered that despite resigning as a director of Silverview Developments Ltd, his role within the company did not change.

Murphy’s mother, Ellen (also known as Eileen) Murphy was appointed as the registered director and has also now been disqualified for eight years for allowing her son to act as a director whilst disqualified.

In addition, Robert and Ellen Murphy failed to disclose to the liquidator the existence of two on-going contracts that were transferred to another company which had a future turnover of over £1m, and oversaw the diversion of funds due to Silverview Developments totalling over £45,000 to be paid to another company.

They also allowed Silverview Developments to trade to the detriment of HMRC from May 2012 until its liquidation in October 2014, when the company had a deficiency as regards creditors of £394,091. Robert Clarke, group leader of insolvent investigations north, part of the Insolvency Service, said: ‘Directors who ignore disqualification undertakings that they have previously given, and those who provide cover for them to allow them to continue to run limited companies, will be vigorously pursued by the insolvency Service.

‘The length of the undertakings in this case sends a clear message to the business community that such actions will not be tolerated.’

Report by Pat Sweet

Pat Sweet |Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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