A Staffordshire businessman, Kulbarg Singh, has been banned from serving as a company director for 6 years after transferring significant company assets, including a collection of classic cars worth more than £100,000, for just £1.

The case, investigated by the Insolvency Service, is a study in deliberate breach of fiduciary duties and transaction at undervalue, highlighting both the risks such misconduct poses and the type of behaviour that corporate investigators can be tasked with uncovering.

Singh, director of Aldridge Construction Engineering Ltd, transferred around £1.5 million in company assets to another company he controlled, Ace Earth Solutions Ltd, for just over £465,000. Singh had served as a director of Ace Earth Solutions Ltd between February 2020 and April 2022. Among the assets transferred were seven classic vehicles, a Daimler from 1936, Jaguars from the 1960s and 70s, and three Rolls Royces, collectively worth over £100,000, sold as part of this broader undervalued transaction.

The sale caused Aldridge Construction to lose more than £1 million, leaving it insolvent. By the time the company went into liquidation in June 2022, it had no remaining assets and total liabilities exceeding £1.5 million to HM Revenue and Customs and other creditors.

From a corporate investigator’s perspective, this case contains several red flags. First, the related-party nature of the transaction: Singh controlled both the selling and receiving companies. Second, the gross undervaluation: Assets worth six figures were effectively transferred for nothing. Third, the timing: The transaction occurred during a period when the company’s financial health was deteriorating. Together, these factors are typical of a transaction at undervalue to a related party, actionable under UK insolvency law.

Our approach in such cases is to reconstruct the true flow of value. That involves tracing the ownership of assets, assessing fair market worth, and examining the director’s role in authorising the transfer. Physical assets like classic vehicles present an advantage for investigators, they carry transparent market valuations, insurance records, and registration histories. This makes it more straightforward to demonstrate the disparity between the book value and the transfer price, and, crucially, to evidence intent.

The Insolvency Service’s decision to disqualify Singh until 2031 shows the strength of that evidence. But while disqualification protects the public from repeat behaviour, it rarely recovers value for creditors. That is where investigation plays a critical role, by equipping liquidators, creditors, and their legal teams with the evidence needed to challenge undervalued transactions and, where possible, claw back lost assets.

Why this case matters

From my perspective, this case underscores three important lessons for the investigative community and for creditors alike.

Related-party transfers can be obvious. Directors may attempt to move assets to companies they control, but these transactions are usually detectable with detailed scrutiny. Evidence is often in plain sight if you know what to look for.

Intent and breach of duties are central. Investigations hinge on demonstrating that a director knowingly acted against the company’s best interests. Selling £100,000 worth of classic cars to a company they controlled for £1 is a clear example of deliberate undervaluation and a breach of fiduciary duties.

Early detection preserves value. Waiting until insolvency occurs often makes recovery impossible. Monitoring and investigating suspicious related-party transactions early can safeguard company assets and strengthen any legal or regulatory action.

Insolvency and debt investigations

When a director sells assets undervalue, creditors lose, and without rigorous investigation, misconduct like this can easily go unchallenged. At ESA Risk, we ensure it doesn’t. For more information on how ESA Risk can help to identify hidden assets or locate targets who have gone to ground, contact Mike Wright, Investigations and Risk Management Consultant, at advice@esarisk.com, on +44 (0)343 515 8686 or via our contact form.

You can also learn more from our Insolvency & Debt Investigations brochure.