Governance
Rude awakening |
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| Governance | |
| Written by Roberta Murray | |
| Wednesday, 27 May 2009 | |
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Bed company director penalised for breaching insolvency act.
A director of a bed company whose dealings cost creditors almost £200,000 has been sentenced to a 12 week suspended prison sentence and 150 hours of community service at Bishop Auckland Magistrates Court. In a statement the Department for Business, Enterprise and Regulatory Reform (BERR) said the prosecution was carried out under the Insolvency Act 1986. Paul Edward Raine, of Windermere Court, Darlington pleaded guilty to the charge of acting as a director of a company known by a prohibited name. In February 2007 Mr Raine's company Furntex Ltd entered voluntary liquidation, owing over £500,000 to creditors. Raine however tried to hide this under the mattress; illegally resurrecting the company under the name of Dreamsleeper Ltd. Raine's "new" venture failed and was placed into liquidation in August 2008. Creditors lost an estimated £195,198. In passing sentence, Magistrates expressed the view that this was a serious and deliberate breach of Section 216 of the Insolvency Act.
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