Eight-year ban for Blackburn director
THE director of Blackburn vehicle recovery business TJ Recovery has been disqualified from being a company director for eight years for failing to keep proper books and records.
The Insolvency Service said Timothy Lynch also failed to “satisfactorily” account for the company’s financial dealings.
The Government has accepted an undertaking from Mr Lynch, 53, of Birmingham, disqualifying him from being a director of a company until 2021.
An investigation found that although the company’s accounts showed turnover of around £36,000, funds totalling £254,000 had passed through its bank account, with around £83,000 of that expenditure being unexplained.
Mr Lynch also couldn’t explain how assets with a value of almost £100,000 came to be transferred to his wife and then sold by her for £85,000. It was also established that although wages of more than £400,000 had been paid out, the company made no PAYE tax payments in 2010 to 2012 and could not account for VAT.
Robert Clarke, head of insolvent investigations North, said: “Directors of limited companies have a clear, statutory obligation to make sure that they maintain full and accurate records. Without these it is impossible to verify what has happened to company funds, account for its assets or establish whether directors have acted properly.
“Directors cannot hide behind accounting failures to cover up their actions and the Insolvency Service will take robust action against those who fail to maintain the standards required.”
TJ Recovery went into liquidation on April 5, 2012, with liabilities of £109,485.
