Ex nursery boss banned from being a company director
Thursday, May 21, 2015
A former chairman of one of the country’s largest nursery groups has been banned from acting as a company director for 12 years for creating false documents and attempting to defraud his construction company.
Alan Proto had a long history of setting up and running businesses in the early years sector, including a sale and leaseback fund, and most recently a nursery comparison website.
For several years until 2012 he was executive chairman at Treetops Nurseries and was leading the group’s expansion.
In 2007 he became managing director and subsequently chairman of Treetops, which grew from a small regional chain to the ninth largest nursery group in the country, with more than 30 nurseries.
An investigation by the Insolvency Service found that Mr Proto created and backdated fictitious documents to try and legitimise asset transfers totaling more than a £1m, as a director of GML Construction.
The company provided modular and timber-frame buildings, largely to the education sector in the South East of England
The investigation found that from December 2012 Mr Proto, who at the time knew the company was becoming insolvent, created false documents and a scheme to put his assets out of the reach of his creditors.
However, the plot was revealed when notes of the plan were found on a computer after they had been deleted.
He attempted to transfer assets worth more than £1m by creating entries on a computer and backdating correspondence. He also created documents, which purported to show other people agreeing to his plans at a time he had never met them or, in relation to companies, which did not exist.
Cheryl Lambert, head of Outsourced Investigations at the Insolvency Service, said, ‘This is a very significant ban, reflecting the severity with which the Insolvency Service considers director conduct.
‘Directors of companies experiencing financial difficulties have a duty to act in the best interests of its creditors. This must include ensuring the transparency of the company’s trading activities. Mr. Proto’s conduct of GML’s affairs fell short of the judgment expected and to protect the integrity of the market, the Insolvency Service will use its powers to protect the business world when directors act in this way.’
Mr Proto gave an undertaking to the Secretary of State for Business Innovation and Skills, not to be a director of a company, or be involved in the management of a company in any way for 12 years from 29 December 2014.
GML traded in the construction industry from 1991 to December 2012 and went into liquidation on 7 January 2014 with assets of 1,893,379 and liabilities of £4,463,599.
More than 200 people lost their jobs.
Mr Proto, 48, was a Cambridge University graduate in Economics, and had qualified as a chartered accountant with Ernst & Young before setting up GML Construction.
He was Kent Entrepreneur of the Year in 2012 and a finalist in The Sunday Times sponsored Young Entrepreneur of the Year Awards in 2002.
In August 2013, Mr Proto set up a nursery comparison service for parents, which he likened to a well-known comparison website.
In an interview with Nursery World, he said, ‘I hope Youswitchnurseries.com will do the same for nurseries as the meerkats have done for car insurance.’
This company now appears to have ceased trading.
Treetops Nurseries was bought in 2007 by the PINE FUND, a Jersey-based unit trust, which Mr Proto had set up in 2005.
The £50m fund worked by buying freeholds of UK day nurseries and renting the nursery back to the operator on 15- to 30-year leases.
The scheme was used by large nursery groups, including Treetops, Bees Bees and Bertram Nursery Group, and acquired 40 or more nurseries.
In 1997 Mr Proto founded the Secret Garden Day Nursery chain of six nurseries, which was sold to Asquith Court (now known as Asquith Nurseries) in 2003.
Nursery World has contacted Mr Proto for a comment.
