Thomas James Brown, director of construction company JKS Brickwork Contractors (S.E.) Limited in Beaconsfield, Buckinghamshire, has been disqualified for eight years for failing to keep proper accounts, so preventing the recovery of 1 million of creditors money.
The disqualification follows an investigation by Company Investigations (South), part of the Insolvency Service.
Mr Brown, 38, of Wapping, east London, has given an undertaking to the Secretary of State for Business, Innovation and Skills, not to act as a director of a limited company for eight years with effect from 17 December 2012.
JKS Brickwork, a construction and civil engineering company, went into liquidation on 17 November 2010 owing 1,053,147 to its creditors.
The last annual accounts filed by the company were for the year to 30 November 2009. The company traded for 11 months beyond this date but Mr Brown failed to provide any records covering the period from December 2009 to the time it went into liquidation..
The lack of records mean liquidators couldnt verify JKS Brickworks expenses during this time, which Mr Brown claimed to be 8,660,196. Nor could they verify the amount owed to the company by its clients, which had been valued as 1,630,170 in the previous year.
The liquidators have therefore been unable to track down the money owed to JKS Brickworks creditors and pay these debts.
Commenting on the disqualification, Mark Bruce, a Chief Examiner at Company Investigations (South) in London, said:
The maintenance of a companys financial records is a crucial responsibility for a director, especially when that company is experiencing financial difficulties.
This investigation uncovered very significant assets and expenses that could not be explained adequately to the liquidator, which prevented him from doing his job properly for the creditors. Bad book-keeping causes clear harm to creditors, damages business confidence and threatens economic growth.
Directors who do not take their responsibilities seriously when dealing with records of a company must understand that they face a significant ban as the Insolvency Service are hot on their heels.