Ban for boss who moved £1m to dodge debts

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The boss of a construction firm has been banned from running companies for eight years after he moved more than £1m out of his failing business to avoid paying debts.

Paul Winskill, 54, founded Aintree-based Premier Asphalt in 1985, offering construction services for commercial buildings and roadworks across the country.

But the company ran into trading difficulties and entered administration on 19 February 2016.

Its administrators subsequently reported to the Insolvency Service that the directors of Premier Asphalt had not fully co-operated with them and failed to explain why the company had paid out more than £1m in the two weeks prior to their appointment.

A winding up petition was served on Premier Asphalt on 3 February 2016 by a trade creditor pursuing debts of more than £300,000.

But an Insolvency Service investigation discovered that prior to entering administration, Winskill transferred £1,044,794 to three other businesses, which were later determined to be operated by him, despite the fact he wasn’t the appointed director.

Winskill was disqualified from acting as a director on 8 February this year, after he admitted transferring more than £1m to the detriment of the company’s creditors.

His ban is effective from 1 March 2018 and lasts for eight years.

Robert Clarke, head of insolvent investigations north at the Insolvency Service, said: “Following extensive enquiries, we discovered not only had Winksill transferred more than £1m out of the company to avoid paying his creditors what they were owed, but the money was moved to other companies which we found that he was also running.

“Directors who put their own personal financial interests above those of creditors damage confidence in doing business and are corrosive to the health of the local economy.

“This ban should serve as a warning to other directors tempted to help themselves first, you have a duty to your creditors and if you neglect this duty you could be investigated by the Insolvency Service and lose the privilege of limited liability trading.”