Christopher McDonnell of Directline UK Ltd has been disqualified for nine years after failing to provide up to date and accurate account records after his firm went into liquidation.
The Lancashire-based company supplied catering equipment and was founded in January 2007. McDonnell was appointed director in March 2013, becoming sole director a few months later on. Directline Ltd went into liquidation in January 2014.
McDonnell could not supply the liquidators with adequate information and several investigations could not be completed. The director could not explain the shortfall in stock, change in business operations, the movement of goods and the unexplained substantial amounts of money in the business bank account.
It was estimated the company was in debt of £1,020,023.
Cheryl Lambert from the Insolvency Service said in a statement, “Directors have a duty to maintain and preserve adequate accounting records. They must also deliver these records up to a Liquidator if the company is placed into Liquidation. Directors who do not comply with this can expect to be investigated by the Insolvency Service and enforcement action taken to remove them from the market place."
"Mr McDonnell has failed to keep records and as consequence a number of transactions cannot be explained and creditors have lost substantial amounts of money. Taking action against Mr McDonnell is a warning to directors to take their duties and obligations seriously."