Father and son property developers disqualified and banned for 19 years
03 December 2010
The father and son team behind a property development company have been disqualified from acting as company directors following an investigation carried out by the Insolvency Service.
Garry and Steven Gibson ran Roxburgh Homes Ltd from their base in Edinburgh and have now been banned for a combined total of 19 years.
The father, Garry Gibson, has been disqualified from acting as a director of any company, without permission from a court, for 15 years - the maximum disqualification period available.
His son, however, was only handed a four year period of disqualification at Edinburgh Sheriff Court.
Commenting on the disqualifications, Robert Burns, head of Company Investigations and Enforcement at The Insolvency Service said the team would not hesitate to use powers to, "protect consumers from directors like Mr Gibson who ignore the terms of their disqualification and go on to run further businesses to the detriment of their creditors."
Garry Gibson had been previously disqualified from acting as a company director in July 1997 for a period of 12 years in relation to his misconduct as a director of Red Castle Homes Ltd.
However, between 2002 and 2008 he breached the disqualification order by acting in the management of Roxburgh Homes, using his son to act as a director in name only.
Despite his existing disqualification The Insolvency Service found that Mr Gibson was the main point of contact with the company's bankers and described himself as the ‘owner' of Roxburgh Homes whilst negotiating a joint-venture agreement with a finance company.
Roxburgh Homes was put into compulsory liquidation on 13 October 2008 owing £475,826 in respect of liabilities. The losses had been accruing since December 2006.
Although Steven Gibson was appointed as a registered director of the company on 30 June 2005, investigators found he passed over his duties to his father, and by doing so, permitted him to act as a director. This led to 'the detriment of a number of creditors', according to The Insolvency Service.