Keeping company records – boring but important
Following an investigation by the Insolvency Service, a scaffolding provider from Birmingham has recently given an undertaking to the Secretary of State for Business, Innovation & Skills in which he did not dispute that he failed to ensure the company preserved or delivered up adequate accounting records.
The director’s disqualification from 13 February 2015 means that he cannot promote, manage, or be a director of a limited company until 2021.
Neither the company’s Liquidator nor the Insolvency Service were able to verify what had become of over £150,000 of company assets or whether the director had been repaid over £70,000 that the company allegedly owed him prior to the Liquidation.
This case demonstrates the importance of paperwork and the burden upon directors to back up their actions, failing which damaging assumption can be made against them.