The director of C M Commercials Ltd, has been disqualified from acting as a director for 8 years for keeping inadequate company records.
Iain Drysdale Mack, (51) was disqualified following an investigation by the Insolvency Service. At a hearing in Hamilton Sheriff court on 10 August 2016, the sheriff made an eight year order against Ian Mack, which commences on 31 August 2016.
The disqualification prevents Iain Mack from directly or indirectly becoming involved in the promotion, formation or management of a company for the duration of the order, without leave of the Court.
On 16 May 2014, C M Commercials, with liabilities of £427,348, was placed into voluntary liquidation. Iain Mack was the sole director of C M Commercials at that time.
Following the Liquidator’s appointment the investigation found that from 1 February 2012 to 16 May 2014, the company books and records were inadequate to:
verify expenditure from the Company bank account totalling £421,308
verify whether receipts into the Company bank account between 1 February 2014 and 16 May 2014 totalling £583,334 are a true representation of the total sales achieved by the Company
verify the position with regards to assets owned by the Company at the date of liquidation, especially with regards to stock held at 31 January 2012 at a value of £395,600, or verify sales of those assets between these dates
establish the true level of liabilities owed to HM Revenue and Customs in respect of VAT
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 will take action against directors who do not take their obligations seriously and abuse their position of trust.
Notes to editors
Iain Mack’s date of birth is 1 July 1965.
Iain Mack was appointed as director of C M Commercials Ltd on 18 January 2008 and remained a director throughout the company’s trading.
C M Commercials Ltd (SC336403) went into voluntary liquidation on 16 May 2014 with a deficiency to creditors of £423,748, which subsequently increase to £556,955. The company operated as a van sales business from the premises at 215 Strathclyde Street, Glasgow, G40 4BY.
A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:
act as a director of a company
take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
be a receiver of a company’s property
In addition that person cannot act as an insolvency practitioner and there are many other restrictions are placed on disqualified directors by other regulations.
Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Further information on director disqualifications and restrictions can be found here.
The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency authorises and regulates the insolvency profession, deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.
Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.
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Published: 8 September 2016
From: The Insolvency Service