A Scottish businessman, Garry Pettigrew, has been disqualified as a company director for nine years after transferring almost £3 million in assets from his waste firm, Healthcare Environmental Services Limited, as it lost NHS contracts. The ban, which prevents him from being involved in company management without court permission, follows a ruling at the Court of Session on Thursday, 20 August.
Pettigrew began moving equipment from the company just days before it lost 17 NHS England contracts in October 2018, with transfers continuing into December 2018 as further NHS contracts were terminated. The company, which serviced the NHS, entered liquidation in April 2019 with debts exceeding £15 million.
Lord Lake, in his judgement, stated that Pettigrew was in 'flagrant' breach of his duties as a director. An Insolvency Service spokesperson said Pettigrew's actions put assets beyond the reach of creditors when the business was facing severely restricted trading, ultimately leading to its liquidation.
Between October and December 2018, Pettigrew caused the transfer of assets worth £2,979,383 to HEG Sustainable Solutions Limited and Starryshaw Consultants Ltd, two connected companies where he and his wife were the only directors. These transfers were made without the consent of the company's bank and despite advice from its accountants and solicitors.