Timothy Patrick Lynch, the director of a Blackburn vehicle recovery business has been disqualified from being a company director for eight years, from 20 February, for failing to keep proper books and records. Mr Lynch also failed to satisfactorily account for the companys financial dealings.
The Secretary of State for Business, Innovation & Skills has accepted an undertaking from Mr Lynch, 53, of Birmingham disqualifying him from being a director of a company until 2021 following an investigation by the Insolvency Service.
Robert Clarke, Head of Insolvent Investigations North, said:
Directors of limited companies have a clear, statutory obligation to make sure that they maintain full and accurate records. Without these it is impossible to verify what has happened to company funds, account for its assets or establish whether directors have acted properly.
Directors cannot hide behind accounting failures to cover up their actions and the Insolvency Service will take robust action against those who fail to maintain the standards required.
The investigation found that although the companys accounts showed turnover of around 36,000, funds totalling 254,000 had passed through its bank account, with around 83,000 of that expenditure being unexplained.
Mr Lynch also couldnt explain how assets with a value of almost 100,000 came to be transferred to his wife and then sold by her for 85,000. It was also established that although wages of more than 400,000 had been paid out, the company made no PAYE tax payments in 2010 to 2012 and could not account for VAT.
TJ Recovery Limited traded as a break down recovery firm from premises in Greenbank Road, Blackburn and was placed into Liquidation on 5 April 2012, with an estimated deficiency to creditors of 109,485.