The director of a construction firm based in the Midlands has been disqualified for seven years.
Mitchell James Smith, from Dudley, could not explain his company’s £4m turnover and admitted that he had failed to keep accurate accounting records.
He appointed liquidators for his business, known as MJS Interiors, in 2020. But they told the Insolvency Service that he had not passed his company’s records to them, meaning that they could not work out if assets could be used to pay off creditors, or even how much was owed.
An investigation by the Insolvency Service then revealed the company had been paid around £2.2m, but that there was no accounting evidence of where the money had come from. Smith also could not explain outgoing payments of around £2.2m.
His seven-year ban will begin on 8 March 2022. He will not be able to be a director of a company, receive a company’s property or take part in the promotion, formation or management of any company without specific permission from a court.
Insolvency Service chief investigator Dave Elliott said: “It is important for all directors to be aware of their responsibilities to the company and its creditors.
“Failure to maintain accounting records is a failing for which the Insolvency Service will seek serious and significant sanction.”