North Norfolk Construction Limited Enters Administration (1 Viewer)

Riskdisk

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On the 11th January 2011 North Norfolk Construction Limited entered administration. The company was just over 3yrs old when it folded and had produced accounts that were pretty good for a new limited company, however back in September 2010 they had a CCJ filed against them for £3,482 and this was the start of many more to come over the following months. At the time of the administration there were nearly £50,000 worth of CCJ's filed against them and non of them had been satisfied. Based on 61 trading experiences that we have received about this company they were paying the bills on average 83 days beyond their agreed terms and this has been getting worse of the last few months.

On the 1st December 2010 the director set up two new companies, both of which have very similar names to the one that has just entered administration.

It just goes to show that a set of accounts on their own does not paint the full picture of what is actually happening behind closed doors. For more information on a company that you may be having problems with or are thinking of dealing with please take a look at our website and have a look at a free report, you can do this by clicking on our company logo anywhere on this site. Please remember to quote 'Scaffolding Forum' when you speak to an advisor.
 
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Hi Riskdisk,

You say the director set up 2 different companies just before the main company went under, I take it this is to salt away any assets that could be sold to pay of creditors? If so can you explain to me why in this day and age we still allow this practise to continue and what other legislation do you think would be useful to protect creditors?
 
Hi AOM,

I cant comment if that is what the director is doing in this case but I have heard stories about other companies that back up what you are saying.

If there is enough evidence that a director is deliberately trying to con people then this can be reported to Companies House who will take the matter further, which can result in heavy fines, suspension from running a company and even prison. People will always try and break the rules for a quick gain regardless of what rules are in place.

On the 2nd January the Insolvency Service launched a new reporting service which is available 24 hrs a day and can be viewed by clicking on this link http://wck2.companieshouse.gov.uk/89b64038f942eade834e00a4e562c3b3/dirsec

This is the reason that we provide this type of information to go with other intel that you may already know about the companies that you are dealing with, so you can make an informed decision based on the whole picture.
 
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There is a snippet in the news section about one director being prosecuted for doing exactly that, I didn't notice it till after I had posted the question to you. It just seems so easy for some people to walk away and so difficult to prove any wrong doing. Thanks for the reply and the link, I have a feeling that might come in handy in the future.
 
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