A bankrupt from Hartlepool has been banned for nine years after he was found running a property development company in direct breach of his bankruptcy restrictions.
Matt Matharu recently signed a nine-year disqualification undertaking after he did not dispute that he acted as a director of Abba North East Ltd while subject to bankruptcy restrictions.
His directorship disqualification became effective on 26 February 2020 and he was joined on the disqualified directors register by fellow Hartlepool resident, Andrew Phillip Bood, who has been banned for failing in his duties as a director of the company.
Abba North East Ltd was incorporated in December 2016 and Bood was the registered director with Companies House.
The company started trading in January 2017 with the aim of purchasing properties to refurbish before selling on for a profit.
Abba North East purchased two properties through a mixture of company funds and loans but only a year later, stopped trading in January 2018.
While trading, Abba North East failed to pay suppliers for goods and the company was wound-up in the court in May 2018 following a creditor’s petition.
The Official Receiver was appointed as Liquidator and during their enquiries into why the company had failed, discovered that although Bood was the registered director, Matharu was running the company.
But this breached Matharu’s restrictions, having been made bankrupt in December 2016, and he hadn’t received permission from the courts.
Matharu is now banned from acting as a director or directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company. Andrew Brood’s four-year disqualification was effective from December 2019.
Robert Clarke, chief investigator for The Insolvency Service, said: “When Matt Matharu was made bankrupt, it was clearly explained to him that he couldn’t be involved in managing a company. At the time he was active at Abba North East, he also told the trustee of his bankruptcy that he was unemployed.
“It is imperative that companies are transparent in their dealings so that other businesses know exactly who is managing the company and those who seek to hide their involvement, as well as those who aid the deception, can expect to be removed from the corporate arena for a lengthy period.”
