Mark Gaffney, the managing director of three liquidated household maintenance companies, has been disqualified from holding a directorship or controlling a company for 13 years. This follows an investigation by the Insolvency Service. The main complaint was that he had failed to keep adequate financial records and could not explain where £1.4m had gone between 2004 and 2008. In addition he had racked up a debt to HMRC of some £1m
Commenting on the case, Malcolm Dunn, Official Receiver for Northampton said:
“The length of Mr Gaffney’s disqualification sends a clear message to other company directors who fail to perform their statutory duties, which include the keeping of proper financial records. The Insolvency Service can and will investigate company directors activities, and where appropriate take action to remove them from the business environment when we find evidence of trading to the determent of their customers”.
So the Official receiver will look into your company's affairs if you are compulsorily wound up by the court and you may face disqualification if you have not acted within the law.
If you are in a financial hole, then stop digging. Seek advice and if the business is not viable then you can talk to our Licensed Insolvency Practitioners.