Gerald William Channing, director of Peterborugh based Trenchright Civils Limited, was barred after failing to submit the company’s books and records to the liquidators and failing to pay tax.

Trenchright went bust in February 2011 owing more than £500,000 to creditors

The last annual accounts filed by the company were for the year ending 31 August 2008.

Channing had not kept proper records from 1 September 2008 until the company’s liquidation in February 2011 – a full two-and-a half years later.

No records were available to account for more than £1m in cash withdrawals from the company during the period.

The lack of proper records has made it difficult for liquidators to recover funds to repay the company’s creditors.

An Insolvency Service investigation found the company had unpaid taxes dating back to April 2009 and owed £424,189 to HMRC.

Mark Bruce, a Chief Examiner at The Insolvency Service said: “Directors are responsible for maintaining a company’s financial records and ensuring tax is paid.

“This investigation found that very significant assets were missing and there were expenses that could not be explained adequately to the liquidators.

“This prevented the liquidators from doing their job properly for the creditors. The taxpayers have also lost out from the director’s failure to pay taxes.

“Other directors tempted to follow this path should remember that if they run a business in a way that is detrimental to either its customers or its creditors they lose the protection afforded by limited liability.

“The Insolvency Service will investigate them and seek to remove them from the business environment.”