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Wed June 23 2021

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Ban for Liverpool building bosses

11 Dec 13 Two directors of a failed Liverpool building company have been disqualified for six years for failing to keep adequate accounts.

Ideal Builders kept less-than-ideal paperwork
Ideal Builders kept less-than-ideal paperwork

Ideal Builders (Liverpool) Ltd went into liquidation in October 2011 owing £98,529 to creditors.

The disqualification, which starts this month on Christmas Day, follows an investigation by the Insolvency Service.

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

Mr and Mrs McStein did not dispute that they failed to ensure that Ideal kept adequate accounting records, which meant it was impossible for the liquidator to verify the company’s income.

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Some customers had also been instructed to make payments into the personal accounts of Mr and Mrs McStein. Investigators found that at least £59,934 of these payments had not been entered into Ideal’s records. This meant it was not possible to identify all the customers, or to know whether there were other payments that did not make it into the company’s accounts.

Insolvency Service regional head of insolvent investigations Robert Clarke 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.”

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