A crane hire company director has been disqualified after trading while insolvent for four years.

Christopher John Etheridge, Director of D&R Pike Crane Hire Ltd, was disqualified for a total of six years.

An investigation by the Insolvency Service discovered that by 01 October 2011, D&R was unable to pay its liabilities (£77,036) as and when they fell due.

HM Revenue & Customs were owed at least £18,036 for VAT, Corporation Tax and NIC, with the the last payment towards VAT being made in January 2010.

In addition, at least six creditors were pressing for payment and a County Court judgement for £3,933 was gained against the company on 14 September 2011.

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The investigation also found 17 dishonoured cheques issued from D&R's bank account totalling £8,161.17, as well as 21 rejected direct debits/standing orders totalling 6,770.74.

However, as a result of Mr Etheridge continuing to trade D&R, the company's liabilities increased from at least £77,036 as at 1 October 2011 to known liabilities of £103,175 as at liquidation.

The situation was exasperated in August 2013 when Mr Etheridge transferred D&R's only crane, its principle tangible asset and form of generating income and turnover, to an associated company for less than what it was worth and then leased it back to D&R.

Andrew Stanley, Official Receiver Chatham at The Insolvency Service, said: "There can be no doubt that Mr Etheridge was aware of D & R's insolvency, nevertheless he chose to ignore this and expose unsuspecting creditors to the risk of continuing to trade for a further 4 years.

"Whilst promising suppliers payments, he personally benefitted from the income of D & R and the protection that limited liability afforded him.

"Limited liability is a privilege that should not be abused and directors should note that should they do so, the Insolvency Service will take appropriate action to remove them from the business community."

(LM)