Having Not Used His Company’s Lloyds Bank Bounce Back Loan On His Business, Instead Sending Most of It to His Personal Account and Leaving the BBL Unpaid, a Company Director is Today Starting a 6 Year Ban

Here is the background story that led to the Company Director named being banned for 6 years, that ban starts today the 7^th of August 2023.

Mr Kevin Wood (“Mr Wood”) caused KW Lifting Consultants Ltd (“The Company”) to not wholly use a Government-backed Bounce Back Loan (“BBL”) for the economic benefit of the company, contrary to the terms and conditions of the scheme.

In that:

• The Company received the BBL totalling £22,000 into its bank account on 28 July 2020 Prior to receipt of the BBL, the Company’s bank balance was £289. From 29 July 2020 to 6 August 2020, £3,280 was paid to “Kevin Wood” “Dividend” and a further £19,350 to his personal bank account, leading to a remaining balance on the account at the end of 6 August 2020 of £963.
• In the same period, £3,076 of trading income was paid into the company bank account.
• Therefore, of the £22,360 paid to Mr Wood between 29 July and 06 August 2020, at least £18,995 was funded from the BBL proceeds.
• Mr Wood asserted that these funds were spent on business expenses, bills, insurance etc, as well as on personal drawings, but insufficient records have been delivered up to the liquidator to explain any of the Company’s disposal of the BBL via Mr Wood’s personal account or the amount he claims to have paid on the company’s behalf, since his Director’s Loan Account held a nil balance on 31 December 2019.
• The £22,000 BBL remained outstanding at Liquidation