An Insolvency Service investigation found that Mr Perfect failed to maintain, preserve and deliver up records that were adequate to explain the financial position of Northwich Cleaning Limited (Northwich) and acted in breach of his fiduciary duties for the period 09 December 2013 to 24 June 2014.
In the absence of complete records it was not possible to determine the purpose of payments in the sum of £35,500 to Mr Perfect. It was also not possible to verify the purpose of 83 cheque payments in the sum of £30,734 and whether these transactions and purchases from Northwich’s bank account had been for the benefit of Northwich.
Mr Perfect acted in breach his fiduciary duties in that he caused or allowed Northwich to enter into transactions totalling at least £52,600 to an estate agent in respect of a London rental property and £40,000 to a company for financial advice, that were either made at a time when Northwich was insolvent or caused it to become insolvent, as they were made at a time when Northwich had failed to pay creditors, specifically HM Revenue and Customs such that at the date of liquidation HM Revenue & Customs were owed £144,831.
On 14 November 2016, the Secretary of State accepted a disqualification undertaking from David Miles Perfect, effective from 5 December 2016, for seven years.
Commenting on the disqualification, Robert Clarke, Head of Company Investigations 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 their duties properly, or is using a lack of documentation as a cloak for impropriety. This director has paid the price for failing to do that, as he cannot now carry on in business other than at his own risk.
Notes to editors
Mr Perfect’s date of birth is 06 August 1963 and he resides in London.
Northwich Cleaning Limited (CRO No. 04866132) was incorporated on 14 August 2003 and its registered office was Suite 22, Peel House, 30 The Downs, Altrincham, Cheshire, WA14 2PX.
Mr Perfect was the sole director of Northwich Cleaning Limited from 09 December 2013 until the Company ceased trading. The Company went into Liquidation on 16 July 2014 with an estimated deficiency of £177,281.
On 14 November 2016, the Secretary of State accepted a Disqualification Undertaking from David Miles Perfect, effective from 5 December 2016, for a period of seven years.
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
Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Persons subject to a disqualification order are bound by a range of other restrictions.
The matters of unfitness that Mr Perfect did not dispute in the Disqualification undertaking were that:
While a director of Northwich Cleaning Limited, I failed to maintain, preserve and/or deliver up books and records that were adequate to explain the financial position of Northwich Cleaning Limited.
I acted in breach of my fiduciary duties in that I caused or allowed Northwich to enter into transactions totalling £92,600, whilst failing to pay creditors, specifically HM Revenue & Customs, such that at the date of Liquidation the sum of £144,831 was owed to HM Revenue & Customs.
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