Dudley construction firm boss disqualified for seven years after unexplained £4m turnover
The director of a home renovation and refurbishment business has been banned after failure to maintain and preserve adequate accounting records meant £4 million turnover could not be explained.
Mitchell James Smith, aged 40, from Dudley, has been disqualified as a director for seven years.
He was director of Dudley-based MJS Business which was started in late 2017 and traded as MJS Interiors. The company started in Delph Road, Brierley Hill, and moved to Dudley Central Trading Estate, Shaw Road, in 2019.
However, the company struggled and by late 2020 had ceased trading before liquidators were appointed to close the company.
The liquidators reported to the Insolvency Service that the director failed to co-operate with them and 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, or how much any creditors were owed.
This triggered an investigation by the Insolvency Service, which uncovered money paid to the company totalling £2,189,405, for which there was no explanation. 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 or, in the alternative, failing to deliver up to the joint liquidators such records as were maintained.
His ban starts on March 8 and the disqualification undertakings prevent him from 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."
