Suspended sentences and fines for boat builders

TWO boat builder directors have been given suspended sentences of six months and fines of £2,500 each for acting as directors of a company while disqualified.

Michael and Martyn Jones acted as directors of M & D Boat Building and Engineering Limited from October 2009 to October 2010 while being undischarged bankrupts, David Hardman tells us.

Well aware

At Kidderminster Magistrates Court prosecutor Roger Faber told that when the defendants filed for bankruptcy in September, 2009 they were both 'well aware' of the disqualification as they were provided with a detailed document.

They both appointed their wives as directors of the company but customers continued to deal with the defendants throughout, which was contrary to the Company Directors Disqualification Act 1986.

Financial difficulties

The defending solicitor Andrew Wakeman told the court that the company began as a general steel works working in partnership with the Severn Valley Boat Centre from 2004, but ran into financial difficulties and went into liquidation in 2008, owing the family £37,000.

With demands from the bank and Her Majesty's Revenue and Customs, the Joneses were left with no alternative but to declare themselves bankrupt.

Without permission

The Joneses admitted that they had continued to do the same roles they had done before, without  permission from the court.

The company has now been taken over by Stourport Canal Craft, with both defendants working for the firm but not as directors.

Michael and Martyn Jones were given suspended sentences providing neither committed an offence over the next year, plus a £2,500 fine each, 100 hours of unpaid community work and both disqualified from being company directors for five years.