Accounting failures see livestock couple shorn of directorships
A couple who were the directors of an animal husbandry and livestock business in Lancaster have been disqualified from acting as company directors for six years over accounting failures, following an investigation by the Insolvency Service
6 Jan 2017
Nathan Brown and Carole Brown failed to maintain or deliver up accounting records for C&N Shearing Ltd (Shearing), which meant that it was not possible to determine the company’s income and expenditure during its final trading period or establish that all money paid out was for the benefit of the company.
It has also not been possible to determine what stock belonged to the company, what book debts were due to the company, verify what happened to assets valued at £123,440 in the 2013 annual accounts or verify how much was owed to creditors.
Shearing was incorporated in 2003 and entered administration in February 2015 with assets of £32,243 and liabilities of £751,727.
Robert Clarke, head of insolvent investigations north at the Insolvency Service, said: ‘Directors have a duty to ensure that their companies maintain proper accounting records, and, following insolvency, deliver them to the office-holder in the interests of fairness and transparency. ‘Without a full account of transactions it is impossible to determine whether a director has discharged his duties properly, or is using a lack of documentation as a cloak for impropriety.’