A Construction Boss from West Midlands has been disqualified following investigations by the Insolvency service.
The man, Mitchell James Smith, aged 40, from Dudley, has been disqualified as a director for 7 years.
Mitchell James Smith was director of MJS Business Ltd Company Registration number 11125409. MJS Business Ltd were a home renovation and refurbishment business which was started in late 2017. They traded as MJS Interiors and were based in the West Midlands.
The company began to struggle and by late 2020 had ceased trading. Shortly after liquidators were appointed to close the company.
The Liquidators reported to the Insolvency Service that the director failed to co-operate with them. Mitchell James Smith failed to deliver up the company’s accounting records, meaning it was not possible to determine if assets could be realised for the benefit of creditors. There was also an absence of information on how much any creditors were owed.
Following concerns, an investigation was launched by the Insolvency Service. Upon inspection of company documents, investigators uncovered money paid to the company totalling £2,189,405. Smith could offer no explanation for these monies. In addition, outgoing payments of £2,205,375 were not explained.
The Secretary of State for Business, Energy and Industrial Strategy accepted a disqualification undertaking from Mitchell Smith after he admitted failing to maintain and/or preserve adequate accounting records. Alternatively, Smith was found guilty in failing to deliver up to the joint liquidators such records as were maintained. His ban will start on 8 March 2022 and run for 7 years.
The disqualification undertakings prevent both from directly, or indirectly, becoming involved in the promotion, formation or management of a company, without the permission of the court.
Dave Elliott, Chief Investigator at The Insolvency Service said:
“It is important for all directors to be aware of their responsibilities to the company and its creditors. Failure to maintain accounting records is a failing for which the Insolvency Service will seek serious and significant sanction.”
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.