The importance of submitting accurate and reliable statutory accounts has been highlighted recently following the disqualification of a company director for 11 years. The director submitted false and inflated accounts which allowed the company to obtain goods on credit, which it subsequently could not repay, which led to it entering into liquidation on the petition of its creditors.
Following investigations by the Official Receiver, the director was banned from acting as a director for 11 years. This case highlights the importance for directors to ensure all accounts filed at Companies House are an accurate reflection of the company's financial position, as they are often relied upon by third parties when considering whether to provide credit.
Directors should always ensure they review and read all accounts carefully and raise any queries in advance of them being submitted.
“Directors have a responsibility to submit accurate accounts, in part to preserve the validity and trustworthiness of the credit rating regime. This disqualification serves as a warning to any who are tempted not to take this responsibility seriously.”