BURNLEY businessman Andrew Connolly has been disqualified for five years as a company director for taking almost £81,000 from company funds meant for creditors.
The disqualification follows an investigation by The Insolvency Service into the director of Connolly Demolition Limited based in Accrington.
Mr Connolly (50) has given an undertaking to the Secretary of State for Business, Innovation and Skills not to act as a company director for five years from January 4th this year.
Another director of the company, 41-year old Michael David Holland of Nelson, has also given an undertaking and is disqualified for three years from the same date, for allowing Mr Connolly to make the payments.
Connolly Demolition Limited (Demolition), which provided demolition and salvage services, went into liquidation on June 9th, 2010, owing creditors £1,293,974.
Mr Connolly admitted that between February 1st, 2010, and June 9th, 2010, he paid himself £80,740 from Demolition’s account, despite the company being insolvent. In turn, Mr Holland accepted that he had allowed Mr Connolly to make the payments, even though both understood that this money should have been used to pay Demolition’s creditors.
Claire Entwistle, Director of Company Investigations (North) at The Insolvency Service said: “The Insolvency Service will rigorously pursue company directors who seek to benefit themselves ahead of their creditors, and those who stand aside and allow them to do so.
“Fair treatment of creditors is essential for business confidence, which is, in turn, essential for economic growth.
“The protection of limited liability should only be available to those who comply with their obligations as company directors.
If those obligations are ignored, that protection will be withdrawn.”
Mr Connolly is also well-known as being the owner of the former Rossendale United Football Club.