The director of a van dealership who failed to keep proper records and accounts has been disqualified from acting as a director for eight years.
The Insolvency Service investigated Iain Drysdale Mack after his business, CM Commercials at Strathclyde Street, Glasgow, went into voluntary liquidation owing almost £430,000.
Mack, aged 51, was the sole director at that time.
The investigation found that for the two years until the liquidator’s appointment the company’s books and records were inadequate, Hamilton Sheriff Court was told.
They were unable to verify expenditure from the company bank account totalling £421,308 or verify whether £583,334 of receipts into the company bank account over four months prior to liquidation were a true representation of its total sales.
Nor could the books determine the position of company assets and vehicle stock at the date of liquidation, or establish the true level of VAT liabilities owed to HM Revenue & Customs.
Robert Clarke, head of company investigation at the Insolvency Service, said: “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. Mr Mack cannot now carry on in business other than at his own risk.”
The Insolvency Service said it will take action against directors who do not take their obligations seriously and abuse their position of trust.