David Topping, the former director of Cresta Furniture based in Preston, which went into administration owing creditors £1.14m has been disqualified from being a company director for 8 years
He received the directors disqualification for failing to keep adequate accounting records for Cresta Furniture. In addition he transferred the entiree shareholding of the business in 2008 to a Cyprus registered company where following his resignation he continued to control the company via a stand in director.
When Cresta went into administration in February 2010 owing £1.14m to creditors left many customers without the furniture they had ordered, according to the Insolvency Service. When the financial records of the company was eventually handed to the administrators the most recent entry was in 2005 and only £56k of £266k of deposits could be identified and verified. Also the directors loan account was £233k overdrawn.
Obviously having a directors overdrawn account is not a reason to be disqualified but if the company is insolvent then you will need to pay it back.