Couple banned from business for trying to avoid bankruptcy law
Pair haNded 16-year tradiNg baN
TWO Lincolnshire business owners have been handed a cumulative 16-year trading ban and have had their company wound up by court order after trying to avoid bankruptcy laws. Husband and wife Daniel and Yasmin Patchett have been banned from acting as directors for any company after investigators found Daniel was managing their firm during his period of bankruptcy.
The pair, from Kingthorpe just south of Market Rasen, have both acted as director for the firm which provided storage and distribution services and was formed in Louth.
Investigators also found their company, DRP Distribution, owed the tax authorities more than £157,000 when it went into liquidation, as well as just over £51,000 to other creditors.
Daniel Patchett, 32, was the active director when the company formed on November 25, 2016, with offices near Louth and Yasmin, 30, was appointed as a director a year later in August 2017. Shortly after this the company moved its registered address from the Fairfield Enterprise Centre to an accountancy firm on Cleethorpes High Street. In February 2018, Daniel Patchett resigned from his role at DRP Distributions after being made bankrupt the previous month meaning he would be unable to hold any directorial position going forward.
The company was eventually wound up by the courts in May 2019 and the Official Receiver, as Liquidator, uncovered that he had continued running the company regardless.
Patchett later confirmed that he had full involvement in the running of the company and continued with these duties throughout the period of his bankruptcy.
Yasmin Patchett, who was appointed as a legal director of the distribution company in August 2017, left the day-to-day running of the business to her husband even though she knew of bankruptcy.
Yasmin Patchett had her six-year disqualification accepted by the Secretary of State in October 2020 after she did not dispute that she allowed a person to act as director whilst knowing they were an undischarged bankrupt.
On October 12, 2020, the Secretary of State accepted a 10-year disqualification from Daniel Patchett after he did not dispute that he acted as a director in contravention of his bankruptcy. The bans were effective from 2 November 2020.
Rob Clarke, Chief Investigator for the Insolvency Services, said: “When Daniel Patchett’s company collapsed, his misconduct was uncovered and it was highlighted that he was running the company whilst being an un-discharged bankrupt. “He took no notice of his bankruptcy restriction and his wife, Yasmin Patchett, knew he was unable to act as a director and covered for him.
“We will investigate those who try and get around bans while having their spouse as an appointed director whilst continuing to run the business themselves, as the length of this ban shows.”
We will investigate those who try and get around bans having their spouse as an appointed director