TWO directors of a property firm which was behind one of Bolton's most prestigious office developments have been banned from running companies by a High Court judge.
Roger Reeves and his wife Catherine of Malpas, Cheshire, were directors of the Wilmslow-based Provincial and City Property Company Ltd.
They were banned for six and three years respectively following the case brought by the Department of Trade and Industry.
The company created the ambitious St George's Square "business studio" development on land at the junction of St George's Road and Kay Street. It brought 42,750 sq ft of new, prestige office space close to Bolton town centre.
Rents from the buildings produced an income of £275,000 a year, with office space in the development among Bolton's most expensive at between £10 and £14 a square foot. But the success of the development was far short of the firm's expectations and they were a victim of the property slump at the end of the 1980s. The development was never completed and three 1,800 sq ft units were never occupied while PCP were running it. The whole complex was put up for sale in 1991 shortly after administrative receivers were appointed, when the company collapsed with debts estimated at £5.1 million.
The development was taken over by a foreign company managed by Highland Property Management who rent out units to government departments, banks and major institutions.
Charges against Mr Reeves included misappropriating or failing to account for £115,000 of PCP's money relating to the sale of two cars and part of the proceeds of an insurance claim for another. Charges against Mr and Mrs Reeves also related to enjoying a life of luxury and failing to abide by the statutory requirements of running a company. Passing judgement, Mr Justice Lightman said the misappropriations and defaults were very serious and "displayed an appalling record."
In the week between the presentation of a report to Barclay's Bank on the viability of the company and the appointment of the receivers, Mr Reeves was involved in the preparation of two backdated letters and a set of PCP board minutes.
The Department of Trade and Industry said the minutes gave the impression that another company, of which Mr and Mrs Reeves were the only directors and shareholders, had offered £150,000 to PCP who had discussed the offer and accepted it.
Mr Reeves admitted in an affidavit he had been "foolish" but the judge said the actions were "not the conduct of an honest man". Mr and Mrs Reeves were also ordered to pay costs of £25,000.
Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.
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