The undertaking, which came into effect on 30 May 2012, restricts Mr Massam from being a director of a company without the permission of the court. He must also disclose his bankruptcy restrictions when applying for credit of more than £500, and the name by which he was made bankrupt when seeking to do any business in a different name.
Investigations found that Mr Massam had neglected his business affairs and failed to pay income tax and national insurance contributions totaling £59,492, and therefore contributed to his own bankruptcy and losses to his creditors.
In deciding the length of the restriction awarded, the Secretary of State took into the account the fact that Mr Massam had been declared bankrupt once before in March 2005 for non-payment of taxes.
Commenting on the case, the Official Receiver in Hull Andrew Oliver said:
“This is a clear case of total disregard for the proper way to conduct business. Mr Massam wilfully neglected to run his business affairs properly and failed to pay his taxes. The undertaking sends a clear message to business operators that such practices will be investigated and dealt with by the Insolvency Service.
Notes to Editors
Bankruptcy Restriction Undertakings remove the requirement for a court hearing at which a Bankruptcy Order for a longer period could be imposed.
2. The Insolvency Service administers the insolvency regime and Official Receivers investigate all compulsory liquidations and individual insolvencies (bankruptcies) to establish why they became insolvent. The Service also authorizes and regulates the insolvency profession; deals with disqualification of directors in corporate failures; assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees; provides banking and investment services for bankruptcy and liquidation estate funds; and advises ministers and other government departments on insolvency law and practice.
3. All public enquiries concerning bankruptcies in Hull should be directed to the Official Receiver’s Office, Hull: 01482 323729 or email@example.com
4. Media Enquiries should be directed to:
Kathryn Montague – Media Relations Manager – 020 7674 6910
Ade Daramy - Press Officer - 020 76596 6187