Director disqualified for seven years

Directors have a responsibility to maintain, preserve and deliver up records that are adequate to explain the financial position of their company. If they fail to do so, they run the risk of being disqualified from acting as a director.

In a recent Insolvency Service investigation, a director was banned for seven years. His transgressions are illuminating. They included:

  • He was unable to explain payments taken for his personal benefit amounting to £35,500.
  • He was unable to explain the reasons for 83 cheque payments totalling £30,734.
  • He authorised payments of almost £100,000 that were made when the company was insolvent, or caused it to become insolvent.


  • act as a director of a company
  • be a receiver of a company’s property

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