Director banned for not keeping proper records
Paul Anthony Georgeson, director of The Bankrupt Shop Limited, has been disqualified from acting as a director for 6 years for failing to maintain adequate company accounting records or to deliver them up to the Liquidator.
On 27 November 2015, the Secretary of State accepted a disqualification undertaking from Mr Georgeson, effective from 18 December 2015, for 6 years.
The company traded from seven locations across the country, retailing in fabric and furniture.
The Company went into Administration on 16 December 2013 with an estimated deficiency of £158,589. An investigation by the Insolvency Service found expenditure of £256,870 remained unexplained, including almost £48,000, spent whilst Mr Georgeson was in Spain. Transactions with a connected company were also unexplained, as was the financial position at liquidation regarding debtors.
Commenting on the disqualification, Sue MacLeod, Chief Investigator at the Insolvency Service, said:
Company directors should note from this enforcement result that any failure to maintain or deliver up adequate accounting records is likely to lead to serious censure.
In this particular case, Mr. Georgeson was aware of the requirement to maintain or deliver up the company’s accounting records, yet failed to do so with the result that transactions amounting to several thousand pounds could not be explained.
This disqualification is a reminder to others tempted to do the same that the Insolvency Service will rigorously pursue enforcement action and seek to remove from them the privilege of trading with limited liability to protect the public for a lengthy period.
Notes to editors
Mr Georgeson’s date of birth is 11 September 1949 and he resides in Liverpool.
The Bankrupt Shop Limited (CRO No. 03325180) was incorporated on 27 February 1997 and latterly traded from seven locations across the country in the retail of fabric and furniture.
Mr Georgeson was a director from 25 April 1997 to 16 December 2013.
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 is available.
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: 26 January 2016
From: The Insolvency Service