The director of an Essex security company has been disqualified for eight years having failed to ensure the company maintained proper books and records.
Lee Garvey was a director of Security Management Services Limited (SMS), which provided security services to private and commercial clients.
SMS was incorporated on 12 March 2015 and traded from Chatsworth Farm, Kirby Cross, Frinton-on-Sea, Essex before the company went into Creditors? Voluntary Liquidation in May 2017, owing ?413,156.56 to creditors.
An Insolvency Service investigation following the liquidation found that Lee Garvey was appointed director from 12 March 2015 until 11 May 2017 ? the date of Creditors? Voluntary Liquidation.
But between March 2015 and May 2017, Lee Garvey failed to ensure that SMS maintained and preserved adequate accounting records, or in the alternative, failed to deliver up the books and records to the liquidator.
As a result, investigators were not able to verify Lee Garvey?s explanation for cash withdrawals totalling ?627,550 made between 29 May 2015 and 2 March 2017 and whether they were used to pay self-employed sub-contractors or made in the ordinary course of business.
Additionally, investigators could not establish the employment status of SMS?s security guards and if they held valid licences with the Security Industry Authority to carry out security work, as well as verifying Lee Garvey?s statement that each guard had a valid licence to carry out work.
On 3 July 2018, Lee Garvey signed an eight-year disqualification undertaking, effective from 31 July 2018, that bans him from acting as a company director or from managing, or in any way controlling, a limited company until 30 July 2026.
Sue Macleod, Chief Investigator of Insolvent Investigations Midlands & West at the Insolvency Service, said:
Maintaining and keeping adequate accounting records is a legal requirement for all companies. Failure to do so is serious misconduct and the length of Mr Garvey?s disqualification reflects this.