Colin Terry Lane, director of Liverpool based Penny Lane Kitchens Limited, has been disqualified for seven*years.
Penny Lane Kitchens Limited (PLK) installed kitchens and bedrooms and went into liquidation on 25 January 2016, owing ?237,689 to creditors, including ?138,082 in respect of unpaid tax.
The Secretary of State for Business, Energy and Industrial Strategy accepted a seven year disqualification undertaking from Mr Lane, which bars him from acting as a company director or from managing, or in any way controlling, a limited company from 1 November 2017 until 2024.
An investigation by the Insolvency Service found Mr Lane had failed to carry out his fiduciary duties as director of PLK having caused payments due to the company to be paid directly into his personal bank account without being recorded within PLK?s trading records.
Upon discovery of this fact, HM Revenue and Customs had determined that a further ?67,405 was due in respect of undeclared Corporation Tax liabilities and that further penalties, interest, and charges totalling ?138,646 were also due.
The Insolvency Service?s investigation further found Mr Lane had failed in his duty as a director to maintain, preserve or alternatively, deliver-up adequate accounting records. As a result, from 1 December 2014 onward, it was not possible to ascertain whether all of the money received, and paid out, by PLK had been accounted for. It was further not possible to establish whether the company had correctly accounted for its tax liabilities or whether there was further money due from Mr Lane in respect of his directors loan account.
Sue MacLeod, Chief Investigator of Insolvent Investigations Midlands and West at the Insolvency Service, said:
In investigating insolvent companies, the Insolvency Service always looks very closely at individuals who demonstrate a disregard for creditors and appropriate action is taken where wrongdoing is uncovered.
Directors have a duty to ensure that their companies maintain proper accounting records, and, following insolvency, deliver them to the office-holder in the interests of fairness and transparency. Without a full account of transactions it is impossible to determine whether a director has discharged his duties properly, or is using a lack of documentation as a cloak for impropriety.