Liverpool directors get six-year ban

TWO directors of a Liverpool building firm that failed in 2011 have been disqualified for failing to keep adequate records.

Insolvency Service investigators found that James McStein, 50, of West Derby, Liverpool, acted as a director of Ideal Builders although the only formally appointed director was his 48-year old wife Susan.

Mr and Mrs McStein each gave undertakings that they would not act as directors, manage, or in any way control a company for six years.

The business went into liquidation in 2011 owing creditors £98,500. Some customers had also been instructed to make payments into the McSteins personal accounts and investigators found that at least £59,934 of these payments had not been entered into Ideal’s records. The couple did not dispute that they failed to ensure that Ideal maintained, preserved adequate accounting records.

Robert Clarke, head of insolvent investigations for the North at the Insolvency Service, said: “Directors have a duty to ensure that their company maintains proper accounting records as required by law. Mr and Mrs McStein did not hide the fact that they sometimes used personal accounts to conduct Ideal’s business, but no sales invoices, or comparable documents, were handed over.

“This meant that it was not possible to identify all Ideal’s customers, or to know whether there were other payments which did not make it into the company’s account. These disqualifications should serve as a reminder to directors that in such circumstances, the Insolvency Service will investigate and remove such operators from the market place for a considerable period of time.”