Missing £1m tips waste boss into ban

The boss of a skip company has been banned for seven years after failing to provide accounting records for over £1m of payments

ADM Skips was incorporated in June 2017 and Michael Martin became a director in February 2018.

The company was involved in disposing of non-hazardous waste. However, it experienced difficulties and ceased trading in July 2019 before a liquidator was appointed to wind up the company.

The liquidator reported to the Insolvency Service that Martin had refused to co-operate with them during the process and did not produce any accounting records.

The Insolvency Service found that before entering liquidation, ADM Skips received more than £1.1m into its account and made payments out of a similar amount.

Transactions included credit card payments of close to £500,000 and foreign currency payments of £448,000.

Investigators were able to recover some records from the ADM Skip’s accountant, but they could not explain the company’s transactions and the legitimacy of the payments.

Dave Elliott, chief investigator at the Insolvency Service, said: ‘Michael Martin failed to work with the liquidator following the winding up of his company, refusing to account for more than £1m that left the company accounts during his directorship.

‘Directors who cause companies to fail to maintain and deliver sufficient accounting records can expect lengthy bans, and Michael Martin is now unable to act as a company director for a significant period.’

Pat Sweet |Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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