It would seem that errant directors are not only being pursued by HMRC for sloppy accounting procedures. The Insolvency Service is now taking a more active interest.
Daniel Mark Holloway, the sole registered director of Holloways Contract Services, based in Romford, Essex, has been disqualified from acting as a company director for 7 years for failing to adequately explain cash withdrawals from the company’s accounts.
Following an investigation by the Insolvency Service into his conduct as director of Holloways Contract Services Limited, Daniel Mark Holloway, 32, has given an undertaking to the Secretary of State for Business, Innovation and Skills not to be a director of a company or be involved in the management of a company in any way for 7 years from 20 October 2014, without leave of the court.
Commenting on the disqualification, Mark Bruce, a Chief Investigator with the Insolvency Service said:
“The undertaking signed by Mr Holloway sends a clear message to other company directors: if you fail to comply with statutory legislation in that company records are not maintained sufficiently enough to explain all transactions especially cash and you have not taken your responsibilities as a director seriously, the Insolvency Service will investigate you and you could be removed from the business environment.
Holloways Contract Services Limited was formed in July 2004 as building contractors in the commercial sector. The company went into liquidation in July 2012 with a deficiency in excess of £1 million.
In giving his undertaking, Mr Holloway did not dispute that the company’s records included certain invoices which did not adequately explain cash withdrawals of £272,345 during the period of 7 October 2011 to 20 December 2011.
A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot
- act as a director of a company
- take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
- act as an insolvency practitioner
- be a receiver of a company’s property