Word of warning for Company directors, a 10-month jail sentence has been given to a director who failed to produce accounting records to the Insolvency Service when a company was put into liquidation due to £200,000 of unpaid tax.
s.386 of the Companies Act 2006 , requires every Company to keep “Adequate accounting records” and failure to do so is a criminal offence under s.387 of Companies Act 2006.
It is our experience that such a lack of accounting records is an all-too-common occurrence in many of the liquidations / administrations that we deal with.
Company directors should reflect and be in no doubt of the consequences of not keeping such adequate accounting records. Insolvency practitioners should take note of this decision and make use of the case law that has now been created in this regard. If you need assistance, please contact Brecher LLP.
Please read full details of this case at: https://www.gov.uk/government/news/bury-director-jailed-after-failing-to-produce-accounts-for-company-which-owed-more-than-200000-in-tax
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