Eric Reid, owner of Glasgow Commercials Limited, has been disqualified for eight years after an investigation found he had failed to keep sufficient accounting records for the business.
The company went into liquidation in August 2013 following a winding up order. HMRC issued a winding up petition to the court in June.
Due to the lack of information in the company’s accounts, it was difficult to clarify the value of the business and its assets as well as explain certain transactions which were unaccounted for.
Employee and payroll information was also missing as were salary records for Mr Reid himself.
In August 2014, the garage premises were raided by police as there was suspected drug manufacturing taking place.
Cheryl Lambert from the Insolvency Service commented:
“Mr Reid’s failure to keep accounting records has hindered the liquidator’s investigations and as a result funds have not been recovered to repay creditors.”
“Taking action against Mr Reid is a warning to directors to take heed of their duties and obligations.”