Keighley company directors banned for keeping bad financial records (From Bradford Telegraph and Argus)
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Keighley company directors banned for keeping bad financial records
9:00am Tuesday 12th February 2013 in News
Two directors of Smart Credit & Debit Limited, a debt advice firm in Keighley, have been disqualified from acting as directors for six years.
They failed to maintain proper accounting records or to account for substantial cash withdrawals from the company.
The disqualifications followed an investigation by The Insolvency Service’s Company Investigation Team in Leeds.
James Smith, 25, and Richard Wilson, 47, both of Keighley, have given undertakings to the Secretary of State for Business, Innovation and Skills not to promote, manage or be directors of a limited company until 2019.
The investigation showed that the accounting records maintained by the company failed to account for cash withdrawals of £117,717 over the ten-month period the company traded for.
The company was placed into creditors’ voluntary liquidation on May 25, 2011, owing £92,528 to creditors of which £62,415 was to trade and expense creditors.
Clive Tranter, head of the Company Investigation North East team, based in Leeds, said: “These directors displayed a lack of trust in their dealings with the financially vulnerable, their own clients and other companies that they provided with services.
“Directors of companies must ensure they maintain sufficient accounting records that show and explain the company’s transactions as required by law.
“These directors failed to do so.”