Fareham-based Directors Disqualified
Two directors of a Fareham-based sports clothing and footwear wholesaler have been disqualified from acting as accompany directors for a total of 14 years.
Ronald Wilson and Catherine Wilson of Feet First (UK) Limited, trading as Klub Kits Limited, were both disqualified for seven years for failing to keep proper books and records, and account for the company’s financial dealings and failing to pay its VAT bill.
An investigation by the Insolvency Service found the company drew 195 cheques, to a total value of £177,649, but was unable to ascertain the funds were spent for the benefit of the company.
Investigators were also unable to determine if all trading income generated by the company between 1 March 2011 and 12 June 2012 had been correctly recorded, with one example of unexplained payment made to relatives of £14,700.
The directors failed to submit VAT returns after February 2010 resulting in an estimated liability at the date of liquidation of £186,410 in respect of VAT.
Feet First (UK) Limited entered voluntary liquidation in June 2012 with an estimated deficiency to creditors of £245,181.
Robert Clarke, head of insolvent investigations north at the Insolvency Service, said: “Directors of limited companies have a clear, statutory obligation to make sure that they maintain full and accurate records. Without these it is impossible to verify what has happened to company funds, account for its assets or establish whether directors have acted properly.
“Directors cannot hide behind accounting failures to cover up their actions and the Insolvency Service will take robust action against those who fail to maintain the standards required.”
By John Brazier