The Birmingham-based director of TJ Recovery also failed to satisfactorily account for the company’s financial dealings.
Following an Insolvency Service investigation Lynch has been disqualified from being a director of a company until 2021.
The investigation found that although the accounts showed turnover of £36,000, funds totalling £254,000 had passed through its bank account, with £83,000 of that expenditure being unexplained.
Lynch also couldn’t explain how assets worth £100,000 came to be transferred to his wife and then sold by her for £85,000.
Although wages of more than £400,000 had been paid .out, the company made no PAYE payments from 2010 to 2012 and could not account for VAT.
Robert Clarke, head of insolvent investigations north, said directors of limited companies have a clear, statutory obligation to make sure that they maintain full and accurate records.
“Without these it is impossible to verify what has happened to company funds, account for its assets or establish whether directors have acted properly.
Directors cannot hide behind accounting failures to cover up their actions and the Insolvency Service will take robust action against those who fail to maintain the standards required,” Clarke said.
TJ Recovery Limited traded as a break down recovery firm from premises in Blackburn and was placed into liquidation on 5 April 2012, with an estimated deficiency to creditors of £109,485.
Hayward Wright can help Directors and business owners make sure their records are in good order and kept up to date. To learn more about how we can help contact us on 01527 69321 or email email@example.com