The directors of a Liverpool-based construction company have been disqualified from acting as company directors for a total of 12 years.
James McStein and Susan McStein of Ideal Builders (Liverpool) Ltd were banned for six years each following an investigation by The Insolvency Service for failing to maintain adequate accounts.
Ideal Builders went into liquidation in October 2013, owing creditors £98,529.
The investigation found that James McStein acted as a director of the company, although the only formally appointed director was his wife Susan McStein.
Neither James nor Susan McStein did not dispute that they failed to ensure that “Ideal either maintained, preserved or, alternatively, delivered up to the company’s liquidator adequate accounting records.”
As a result, liquidators were unable to verify, among other things, the total income of the company.
Robert Clarke, head of insolvent investigations north, at The Insolvency Service, said: “Directors have a duty to ensure that their company maintains proper accounting records as required by law.
“Mr and Mrs McStein did not hide the fact that they sometimes used personal accounts to conduct Ideal’s business, but no sales invoices, or comparable documents, were handed over.
“This meant that it was not possible to identify all Ideal’s customers, or to know whether there were other payments which did not make it into the company’s account.”
A section of Ideal Builders’ customers were instructed to send payments to the personal accounts of the McSteins, with at least £59,934 worth of these payments unreported within company accounts.