Eric Reid has been disqualified from acting as a director for 8 years for failing to keep adequate accounting records. Mr Reids disqualification follows an investigation by the Insolvency Service.

Glasgow Commercials Limited began trading as car repair garage in 2007. On 14 June 2013, HM Revenue & Customs presented a petition to wind up the Company. On 13 August 2013 a winding up order was granted and a Liquidator was appointed.

On 16 August 2014 the police carried out a raid at the trading address of the company in connection with allegations of drug manufacturing at the premises.

The Insolvency Service investigation found that Mr Reid had failed to ensure that the company maintained or preserved full accounting records, or that he had failed to deliver them up. As a consequence, it was not possible to verify the true nature of the companys business and operations, to establish when the company ceased trading, and to establish the identity and value of the companys assets.

Specifically, it was also not possible to:
Establish the reason for payment into the two Company bank accounts totalling 70,684.80 in the period from 7 January 2013 to cessation of trading
Establish reasons for payments from the two Company bank accounts totalling at 119,554.66 in the period from 7 January 2013 to cessation of trading, and whether that was for bona fide Company expenditure.
Ascertain, in the absence of any VAT records, the full and true amount due to HMRC in relation to VAT.
Ascertain, in the absence of any payroll records, the names and identities of employees and the full and true amount due to HMRC in relation to PAYE/NIIC including the accuracy of P35s submitted.
Establish the true amount received by Mr Reid in salary and any other benefits

At the date of Liquidation creditors were owed at least 240,166.

Commenting on the disqualification, Cheryl Lambert, Chief Investigator at the Insolvency Service, said:

Directors who do not maintain adequate accounting records or do not deliver them up to a liquidator can expect to be investigated by the Insolvency Service and enforcement action taken to remove them from the market place.

Mr Reids failure to keep accounting records has hindered the liquidators investigations and as a result funds have not been recovered to repay creditors.

Taking action against Mr Reid is a warning to directors to take heed of of their duties and obligations.