Director of D&S Poultry Limited, Darryl Glyn Martin, has been disqualified for seven years after an investigation found he had failed to pay VAT and did not comply with the liquidator when the company became insolvent.
The Insolvency Service found he had paid trade creditors before HMRC for over three years leading up to the company’s liquidation in 2012. The company owed a total of £100,000 to creditors and £60,000 in VAT.
Head of Insolvency Investigations North, Robert Clark, commented “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.”
In the event of insolvency, directors have a duty to act accordingly which includes acting to maximise creditors’ best interests. In this case, the director deliberately paid a creditor before another, known as preference.