Director banned over sale of historic cars

A civil engineering director faces disqualification after undervaluing assets in a company sale.

Director banned over sale of historic cars

Kulbarg Singh, a director of Aldridge Construction Engineering Ltd, has been banned for six years after selling seven classic cars, including two Jaguars and three Rolls-Royces, for only £1 to another firm he controlled. The cars, collectively valued at £101,500, were part of an asset transfer worth at least £1.5 million to Ace Earth Solutions Ltd. Following an investigation by the Insolvency Service, it was revealed that the undervalued sale contributed to Aldridge's liquidation in 2022, which left creditors with significant losses. Singh's actions prompted strong criticism from officials, emphasizing the need for accountability among company directors.

Singh's case illustrates a significant concern in corporate governance regarding how directors manage assets. The blatant undervaluation of classic cars raises questions about ethical responsibilities and the protection of creditors. The disqualification serves as a warning to others in similar positions, stressing that misconduct will not be tolerated. This incident may prompt further scrutiny into asset management practices across industries, especially in situations involving financial distress.

Highlights

The outcome of this case emphasizes that integrity in business management remains paramount.