Under the conditions of the order, Christopher James Dawson (36) of Spalding, Lincolnshire, is unable to borrow more than £500 without telling a lender that he is subject to extended restrictions, or act as a company director without the court’s permission for 12 years.

The court heard that Christopher Dawson was appointed joint director of CJ & KE Dawson Agric Services Limited in August 2012, and sole director of CJ Dawson & Sons Limited in November 2014. Both companies provided agricultural and farming contractual services to local clients.

On 27 February 2016 and 9 May 2016, Christopher Dawson submitted insurance claims, one from each company, totalling almost £35,000. In the claims, he explained that agricultural equipment, a tractor and three trailers, had been stolen.

The claims were paid out but the insurer became concerned over the second claim and withheld part of the payout while investigations were undertaken.

In an interview with a private investigator on behalf of the insurer, Christopher Dawson admitted that the claims had been false. It emerged that the company had been unable to pay its creditors, and so the agricultural equipment was seized in lieu of payment.

Although Christopher Dawson agreed to repay the insurer, he had already spent the money on day-to-day company running costs, and only £1,100 was received by the insurer.

Legal proceedings were issued against him in November 2017 with a judgement in favour of the insurer being made in February 2018. Christopher Dawson was made personally liable for the insurance payout and ordered to cover the insurer’s legal costs.

Unable to pay the judgement order, bankruptcy proceedings were filed against Christopher Dawson and he was declared bankrupt in August 2018.

Bankruptcy restrictions are usually lifted after 12 months but, given the nature of Christopher Dawson’s conduct, the Official Receiver applied to have his bankruptcy restrictions extended.

On 17 May 2019 in the County Court at Lincoln, sitting for the County Court at Boston, Deputy District Judge Cooper made a Bankruptcy Restrictions Order against Christopher Dawson for 12 years to last until 16 May 2031.

Christopher Dawson did not attend the hearing.

Gerard O’Hare, Official Receiver for the Insolvency Service, said:

This kind of behaviour from a company director is unacceptable, and it is only fitting that Christopher Dawson has received such severe bankruptcy restrictions in recognition of this.

This result will protect the business community, and act as a warning to other directors of the penalties for fraud.

Christopher James Dawson is of Spalding and his date of birth is May 1983.

CJ & KE Dawson Agric Services Limited (Company number 08183804).

C J DAWSON & SONS LIMITED (Company number 09330368).

These are restrictions set out in insolvency law that the bankrupt is subject to until they are discharged from bankruptcy. Further guidance is available on GOV.UK.

The Insolvency Service, an executive agency sponsored by the Department for Business, Energy and Industrial Strategy (BEIS), administers the insolvency regime, and aims to deliver and promote a range of investigation and enforcement activities both civil and criminal in nature, to support fair and open markets. We do this by effectively enforcing the statutory company and insolvency regimes, maintaining public confidence in those regimes and reducing the harm caused to victims of fraudulent activity and to the business community, including dealing with the disqualification of directors in corporate failures. Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

You can also follow the Insolvency Service on:

A Spalding company director who submitted fraudulent insurance claims for stolen agricultural equipment has received a 12-year bankruptcy restrictions order.

For the first time large businesses could be fined for failing to pay smaller suppliers on time as part of a robust package of measures unveiled today by Small Business Minister Kelly Tolhurst (Wednesday 19 June).

Company boards will now be held accountable for payment practices to small businesses within their companies in a drive to increase transparency and accountability on late payments. Measures will force Audit Committees to report payment practices in company annual reports.

The government will consult on strengthening the powers of the Small Business Commissioner to hold to account the minority of larger businesses who fail to make payments on time. New powers could include compelling information and disclosure of payment terms and practices, imposing financial penalties or binding payment plans on large businesses found to have unfair payment practices.

Responsibility of the voluntary code of best practice – the Prompt Payment Code – will be moved to the Small Business Commissioner. This will put tools to tackle late payment under one organisation, ensuring the Commissioner has the powers to affect culture change in unfair payment practices.

Small Business Minister Kelly Tolhurst said:

The vast majority of businesses pay their bills on time, with the amount owed in late payments halved over the last five years. But as a former small business owner, I know the huge impact a late payment can have on the ability of a small business to plan, invest and grow.

Small businesses are the backbone of our economy and through our modern Industrial Strategy we want the ensure the UK is the best place to start and grow a business. These measures will ensure that small businesses are given the support they need and ensure that they get paid quickly – ending the unacceptable culture of late payment.

Other proposals include:

A tough new approach to large companies which do not comply with the Payment Practices Reporting Duty – an existing mandatory requirement on large businesses to report payment practice to a national database twice a year. The legislation allows for the prosecution of those which do not comply, and fines may be imposed. The government will consult on giving these powers to the Small Business Commissioner.

A Business Basics Fund competition of up to £1 million in funding to encourage businesses to use technology to simplify invoicing, payment and credit management to ensure they work as effectively as possible.

Mike Cherry, National Chairman of the Federation of Small Businesses, said:

Small businesses will be delighted with today’s announcement. FSB has worked very hard with government to create a whole-board approach to late payment within the UK’s large companies, and empower Audit Committees to look after the supply chain. Together with measures to strengthen the Small Business Commissioner’s powers and reform the Prompt Payment Code, the measures today could finally see an end to poor payment practice. Changing our business culture will boost the small business community, productivity and growth.

Small Business Commissioner Paul Uppal said:

During the first 16 months of my post I have been struck by the trepidation felt by small businesses when talking about late payment with their large suppliers.

The government has a range of measures in place to tackle late payment and this consultation is a further step in the right direction to protect and support small businesses.

I welcome any additional provisions which will strengthen the influence my Office has in tackling poor payment practice and levelling the existing playing field.

Philip King, Chief Executive of the Chartered Institute of Credit Management said:

We welcome this announcement and in particular the proposal to bring the Prompt Payment Code under the auspices of the Small Business Commissioner in a managed transition.

We will continue to work closely with the Commissioner and the government in supporting small businesses and driving cultural change and look forward to engaging with existing signatories and wider stakeholders in shaping the best practice principles of the future.

This ambitious package of measures will level the playing field for the UK’s 5.7 million small businesses, delivering on the modern Industrial Strategy’s ambition to make Britain the best place to start and grow a business. Ending the culture of late payments will pave the way to boost SME productivity, remove barriers to growth and improve cash flow.

The Small Business Commissioner’s Office was set up by government in 2017 to tackle the issue of late payments. It has already recovered over £3.8 million and more powers will enable it to tackle this unacceptable culture and do more to champion businesses across the UK.

Notes to editors

• Read the response to the consultation – Creating a responsible payment culture: a call for evidence on tackling late payment.
• The Office of the Small Business Commissioner was launched in December 2017 to ensure fair payment practices for Britain’s small businesses and support them in resolving their payment disputes with larger businesses and bring about culture change. For more information, visit the website
• The Prompt Payment Code sets standards for payment practices and best practice in payment culture. It is currently administered by the Chartered Institute of Credit Management on behalf of the Department for Business, Energy and Industrial Strategy. The Code has more than 2,000 voluntary signatories. Compliance with the principles of the Code is monitored and enforced by the Prompt Payment Code Compliance Board. The Code covers prompt payment, as well as wider payment procedures.

For the first time large businesses could be fined for failing to pay smaller suppliers on time as part of a robust package of measures unveiled today by Small Business Minister Kelly Tolhurst (Wednesday 19 June).

For the first time large businesses could be fined for failing to pay smaller suppliers on time as part of a robust package of measures unveiled today by Small Business Minister Kelly Tolhurst (Wednesday 19 June).