Director banned after selling classic cars for £1

Kulbarg Singh has been banned from being a director for six years after an Insolvency Service investigation

A businessman who sold seven classic cars for just £1 to another company he controlled has been banned from being a director for six years.

Kulbarg Singh, 62, was director of Aldridge Construction Engineering Ltd when he sold all the company assets to Ace Earth Solutions Ltd, of which he was also a director, in 2021, before the former entered liquidation a year later.

The Insolvency Service said Singh, of Haselour Lane in Harlaston, Staffordshire, sold the assets for more than £465,000 – much less than their £1.5m value.

The seven cars, which had a combined value of £101,500, were two Daimlers from 1936 and 1965, two Jaguars from 1969 and 1978 and three Rolls Royce from the 1970s.

Kevin Read, chief investigator at the Insolvency Service, said Singh selling the assets for less than they were worth put the money "out of reach" of creditors.

"Directors who abuse their position will face serious consequences," he said. "Selling historic cars worth over £100,000 for just £1 shows the extent of Singh's misconduct."

Aldridge Construction Engineering Ltd was set up in November 2015 and was involved with roads resurfacing and installing gas pipes.

The sale of the assets resulted in the firm losing more than £1m, which left it insolvent.

By the time the company went into liquidation in June 2022, it had no assets and total liabilities to HM Revenue and Customs and other companies of more than £1.5m, the Insolvency Service said.

The Secretary of State for Business and Trade accepted a disqualification undertaking - a voluntary disqualification - from Singh and his ban started on 24 July.

It prevents him from being involved in the promotion, formation or management of a company, without the permission of the court.