Mr Goldsmith’s disqualification, from 24 April, follows an investigation by the Insolvency Service and prevents him from acting as a company director or from managing or in any way controlling a company until 2021.
The investigation found that minimal records had been delivered up to the liquidators of the companies following their failure in 2011 and 2012, and as a result it was impossible to verify the companies’ financial dealings, in particular, the extent of their assets and liabilities, the purpose of cash transactions and the nature of inter-company transactions.
As a director, Mr Goldsmith had a responsibility to make sure this was done.
Commenting on the disqualification, Robert Clarke, Group Leader of Insolvent Investigations North at the Insolvency Service, said:-
Directors have a clear, statutory 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 Goldsmith has paid the price for failing to do that, as he cannot now carry on in business other than at his own risk.
The companies had a combined deficiency of more than £1.5million pounds, having entered separate insolvency proceedings between May 2011 and February 2012.
Notes to Editors
Kyle Ashley Goldsmith is of Clitheroe and his date of birth is 13 August 1972.
Kymo Holdings Limited was incorporated on 10 August 2006 and was placed into Administration on 07 June 2011. Lancashire Nursing & Residential Homes was incorporated on 09 July 2009 and went into compulsory liquidation on 25 May 2011.
Carecroft Limited was incorporated on 18 October 2010 and was placed into Administration on 16 February 2012.
The disqualification order against Mr Goldsmith was made by Bolton County Court following a hearing on 3 April 2014, and will commence on 24 April 2014.
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 from: http://www.bis.gov.uk/insolvency.
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