Mr Armstrong’s wife, Alexandra Duncan Armstrong, who was the appointed director and who assisted him in breaching his disqualification, has also been disqualified for 8 years.

The disqualifications follow an investigation by the Insolvency Service.

Mr Armstrong, 54, of Doncaster in South Yorkshire was initially subject to a disqualification order made on 9 October 2008, following which he formally resigned as a director of Voltaire Electrical Ltd with Mrs Armstrong being appointed in his place.

However, the investigation found that Mr Armstrong continued to manage the company, being the sole consultant and bank signatory as well as negotiating contracts with clients. Mrs Armstrong, the only formally appointed director, was removed as a bank signatory in August 2010 at the request of her husband.

Commenting on the disqualifications, Robert Clarke, Group Leader Insolvent Investigations North, which is part of the Insolvency Service said:

Directors who ignore disqualification orders made against them, and those who provide cover for them to continue to run limited companies, will be vigorously pursued by the Insolvency Service. The lengths of the Disqualification Orders in this case send a clear message as to the serious view taken by the Court of such corporate impropriety.

In addition, to breaching the existing disqualification, the couple failed to properly deal with the company’s affairs in respect of VAT and Corporation Tax, leading to HM Revenue and Customs being owed over £50,000.

Between September 2010 and the company’s liquidation over £220,000 was paid to Mr Armstrong. However, no VAT returns or payments were ever submitted to HM Revenue & Customs, despite the company registering for, and charging, VAT on its sales.

Notes to editors

Voltaire Electrical Ltd (CRO No. 06349199) entered creditors’ voluntary liquidation on 8 March 2012 with a deficiency to creditors of £71,353, of which £58,307 was due to HMRC. Voltaire Electrical Ltd latterly acted as computer consultants with the only consultant being Mr Armstrong.

Stephen James Armstrong’s date of birth is 25 June 1960 and Alexandra Duncan Armstrong’s date of birth is 18 February 1964. They are both of Doncaster.
An Order was made in the County Court in Sheffield for Mr Armstrong to be disqualified for a period of 12 years and for Mrs Armstrong to be disqualified for a period of 8 years. Neither Mr nor Mrs Armstrong provided any representations to the Court or attended the disqualification hearing.

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot

• act as a director of a company
• take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
• act as an insolvency practitioner
• be a receiver of a company’s property

In addition many other restrictions are placed on disqualified directors by other regulations.

Further information on director disqualifications and restrictions is available.

The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency authorises 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.
Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.