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Director hit with ban for poor record keeping

Director hit with ban for poor record keeping

A Director of a consultancy based in Edinburgh, has been banned for 7-years after he failed to maintain adequate records and explain what happened to the company.

Paul Gilhooley Consultancy Ltd, incorporated in May 2014 but ceased trading in June 2017, after being advised to enter into a Creditor Volountary Liquidation (CVL). Paul Gilhooley, 48, from East Lothian, was the sole director.

Despite numerous requests, Paul Gilhooley failed to deliver any accounting records to the insolvency practitioners, which is asked for in a CVL.

The Result

As a result, the insolvency practitioners could not determine from June 2016 what the consultancy had been doing, the exact reasons for the insolvency or the level of payment taken by Paul Gilhooley out of the company.

The administrators were also unable to verify a significant tax debt of just over £207,000 and could not establish the consultancy’s debts, what happened to £14,000 of cash taken from the company’s bank account or verify what happened to the consultancy’s fixed assets.

Given The Boot

Paul Gilhooley admitted on 11 September 2018, that he failed to ensure Paul Gilhooley Consultancy Ltd maintained, preserved and /or delivered up adequate accounting records, in which he accepted a disqualification.

As of 2 October 2018, Paul Gilhooley is now banned for 7 years from directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company.


About The Author

Mark Hodgson is the Managing Director of Tremark Associates, one of the UK’s leading providers of investigative services. Mark formed Tremark aged just 25 in 1995 and has over 30 years experience in private investigations and commercial debt recovery industries. He is a leading figure and a campaigner for regulation of the Industry and past President of the Association of British Investigators, a member of the World Association of Detectives, The Chartered Institute of Credit Management, The Institute of Paralegals and an associate member of R3 -The Association of Business Recovery Professionals. Mark splits his time between the Leeds and London Offices. He is a dad of two, a keen runner, cyclist and a Leeds United season ticket holder.