The County Court at Birmingham has handed a nine disqualification order to John Alexander Ferguson (43) for failing to maintain, preserve and deliver up records as he was required to do, following the liquidation of Allied Commercial Factors*Limited.
Mr Ferguson was the sole director of Allied Commercial Factors Limited which provided financial services and operated from Cannock, Staffordshire. The company went into Liquidation on 14 October 2014, owing an estimated ?1,159,011.
An Insolvency Service investigation found, specifically, that the company had failed to maintain, preserve or deliver up records that could explain payments of ?20,529, 834 from the company bank account. This included ?329,567 paid directly to Mr Ferguson and ?177,337 paid to an associated company.
The Insolvency Service also found that Allied failed to deal with its tax affairs and at Liquidation, the Company owed HMRC in excess of ?290,000 for VAT, penalties and charges.
Commenting on the disqualification, Sue MacLeod, chief investigator at the Insolvency Service, said:
Company directors should note from this enforcement result that any failure to maintain or deliver up adequate accounting records is likely to lead to serious censure.
In this particular case, Mr Ferguson failed to deliver up the Company?s accounting records with the result that transactions amounting to more than ?20,500,000 could not be explained.
This disqualification is a reminder to others tempted to do the same that the Insolvency Service will rigorously pursue enforcement action to seek and remove from them the privilege of trading with limited liability to protect the public for a lengthy period.