Former Cardiff City chairman Peter Ridsdale banned as company director
Insolvency Service gives Ridsdale seven-and-a-half year ban
Relates to payments during his chairmanship of Cardiff City
Peter Ridsdale
The ex-Cardiff chairman Peter Ridsdale has been banned as a company director for seven-and-a-half years. Photograph: James
Guardian staff
Wed 3 Oct 2012 16.41 BST
Peter Ridsdale, the former Cardiff City, Leeds United and Barnsley chairman, has been banned from holding any company directorships for seven-and-a-half years after an investigation into financial irregularities.
The Insolvency Service's inquiry related to payments totalling £347,000 made to Ridsdale by Cardiff between May 2007 and March 2009, which should have been directed to his company WH Sports Group.
The inquiry found the sums were in fact paid into personal bank accounts in Ridsdale's name, while WHSG was liquidated with significant tax debts.
Ridsdale's wife Sophie, a co-director of WHSG, has also been disqualified, with her ban expiring in April 2016.
The Insolvency Service said in a statement: "Investigators found that WHSG traded from 2003 to 2007 and was used by Mr Ridsdale to provide sports and leisure consultancy services to football clubs.
"The company went into liquidation on 22 April 2009 with assets of £22,592 and liabilities of at least £478,698, including £442,353 owed to HM Revenue & Customs (HMRC).
"In signing the undertaking, Mr Ridsdale did not dispute that:
• Between May 2007 and March 2009, he acted improperly and in breach of his duties to WHSG by causing payments totalling £347,000, received for invoices raised by WHSG for services provided to a football club of which he was the chairman, to be paid into personal bank accounts held in his own name, to the detriment of WHSG and its creditors.
• He also failed to disclose the relevant transactions to the liquidator of WHSG, who did not become aware of them until July 2010 when information was provided by the football club.
• He failed to ensure that WHSG complied with its statutory obligations to make Corporation Tax, PAYE and National Insurance Contributions, and VAT returns and payments to HMRC as and when they were due. At liquidation WHSG's liabilities included £166,421 in unpaid Corporation Tax, £102,279, in unpaid PAYE and NIC, and £173,653 relating to unpaid VAT.
• He failed to ensure that WHSG complied with its statutory obligations to prepare and file accounts with the Registrar of Companies by the due dates for three successive accounting periods.
Claire Entwistle, director of Company Investigations North at the Insolvency Service, said: "As someone who has had many directorships, Mr Ridsdale ought to be aware of the responsibilities that come with such a position. The protection of limited liability is available to those who comply with their obligations as company directors. If those obligations are ignored, the protection will be withdrawn, as Mr Ridsdale has found to his cost.
"One of the main purposes of the Company Directors Disqualification Act is to ensure that proper standards of conduct of company directors are maintained, and these disqualifications should serve as a reminder that the Insolvency Service will investigate unacceptable conduct and deal robustly with directors who harm creditors by using unacceptable financial practice."
Ridsdale said in a statement: "I can confirm that I have agreed a voluntary undertaking not to act as a company director as a result of ongoing issues with a personal matter which occurred in 2009.
"I am currently undertaking a role of 'Chairman of Football' at Preston North End but am not a director nor at any time have I sought to be one."
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