Payroll Company Director Disqualified After Transferring Funds Abroad
Paul Bresnihan, a 49-year-old director from Loughborough, has been disqualified from serving as a company director for seven years following his involvement in transferring 4.8 million Euros to a bank account in Montenegro while his company was insolvent, owing over £32 million to HM Revenue and Customs (HMRC).
Details of the Case
Bresnihan was at the helm of CJS Engagement 2 Ltd, a Leicester-based payroll enterprise, when the company encountered serious financial difficulties. In March 2023, HMRC alerted the company to unpaid VAT, demanding full payment. However, no payments were made, leading HMRC to file a petition to wind up the company in June 2023, citing a staggering outstanding debt of £32,427,882. The company was officially wound up by August 2023.
During an investigation by the Insolvency Service, it was found that between June and July 2023, Bresnihan had diverted 4.8 million Euros to a Montenegrin bank account, but he has failed to provide any justification for these transactions. Furthermore, he did not assist the Insolvency Practitioner in recovering the funds.
Disqualification and Consequences
Bresnihan’s disqualification will take effect from 27 January 2026. By signing the undertaking, he acknowledged his mismanagement as a director. This action has drawn condemnation, as highlighted by Kevin Read, Chief Investigator at the Insolvency Service, who stated that Bresnihan seemingly disregarded his company’s considerable debts while continuing to transfer money internationally.
Read further indicated that the lengthy disqualification will prevent Bresnihan from participating in any directorial roles, allowing time for efforts to recover the misappropriated funds.
Background
This case underscores the necessary oversight in corporate governance, particularly for businesses facing insolvency. The actions of individuals like Bresnihan highlight the importance of regulatory frameworks designed to protect creditors and ensure financial responsibility.
Source: official statements, news agencies, and public reports.
https://www.gov.uk/government/news/loughborough-director-who-transferred-funds-to-montenegro-account-despite-owing-millions-to-hmrc-is-disqualified
