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Security director disqualified for seven years 27 March 2014

The director of a Huddersfield-based security company has been disqualified from acting as a director for seven years.

Christopher Hill of Inventive Security Limited was banned following an investigation by the Insolvency Service for failing to keep proper records.

Hill told investigators that company records stored on a laptop had been stolen from his car, a week after HMRC had made a demand to inspect the records.

As a consequence, investigators were unable to establish the income and expenditure of the company, or account for cash withdrawals of more than £130,000.

The company also failed to submit VAT returns for more than two years. HMRC raised a claim for £594,176, none of which was paid, following an inspection of Inventive’s customers’ records.

Robert Clarke, head of insolvent investigations north 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 liquidator, or face the consequences.

“Mr Hill failed to do this and has now paid the price as he cannot carry on in business other than at his own risk.

“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.

“Where records are held electronically the expectation is that a company will keep a separate, up to date, back up in a secure location.”

Inventive Security entered into a Creditors Voluntary Liquidation (CVL) on 26 April 2012 with assets of £5,962 and liabilities of £725,577.

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