Insolvency Service investigates director for failure to keep company records

Article summary

The Insolvency Service has investigated David Smalley, who told investigators he was not in control of his company after submitting a reclaim for VAT totaling £3.3m. Smalley also failed to ensure the company maintained or preserved accounting records during his period as director from February 2014 to December 2015. Smalley claimed his role as director was a ‘front’ for the business as he was paid amounts by those who were the controlling influence of the company. He has been sentenced to eight months imprisonment, suspended for 12 months, made subject to a three-month curfew and disqualified as a director for four years for one count of failing to keep adequate company records.