Newark director disqualified for eight years

The director of a Newark-based waste management firm has been disqualified for failing to keep proper financial records.

Paul Cosgrove, a director of TBP & Son, had a disqualification order made against him, with effect from 24 October 2017, on behalf of the Secretary of State for Business, Energy & Industrial Strategy, which prevents him from becoming directly or indirectly involved in the promotion, formation or management of a company for eight years.

The company went into liquidation on 13 February 2015 owing £1,744,396 to creditors, of which £1,058,168 was owed to trade and expense creditors and £686,128 was owed to HM Revenue & Customs.

The unfit conduct that led to Cosgrove receiving an order was that he failed to maintain, preserve or deliver up the books and records of the company which resulted in it not being possible to:

– determine the reason for company expenditure totaling £4.2m
– explain what happened to assets totaling £5,242,845.
– determine the true level of VAT due to HMRC

Martin Gitner, deputy head of investigations with the Insolvency Service said: “Failure to deliver up the books and records of a company to the Liquidator which results in a loss to creditors and the public purse will be rigorously investigated by the Insolvency Service in liaison with HM Revenue & Customs.

“Even where the director chooses not to engage with the investigation process, disqualification as a director is the likely outcome of such activity.”