The boss of a community interest company that went into liquidation with claims for debts of almost £75,000 has been disqualified from acting as a director for 10 years.
Kathryn Holton, 39, of Ashford in Kent was a director of The Music Hub Plus, which ran music courses in Kent.
The company entered liquidation in 2017, which prompted 28 organisations, including the Department for Business, Energy and Industrial Strategy, to file claims as creditors.
The Insolvency Service said today this was the second time it had acted against Holton. According to the service, she was disqualified in October 2016 in connection with two other companies that had entered into insolvency proceedings.
But she continued to act as director of the The Music Hub Plus even though she had resigned from the post two months earlier and accepted the disqualification.
The service said she failed to maintain adequate records, which meant the liquidators had been unable to determine The Music Hub Plus’s final assets, liabilities and deficiencies.
Her failure, it added, meant the liquidators had been unable to identify payments totalling more than £62,000 from the company's accounts, including £10,000 of credit card spending.
Anthea Simpson, chief investigator for the Insolvency Service, said in a statement: "Not only did Kathryn Holton disregard her duties as a director of a community interest company, but she defied a disqualification undertaking she had personally signed up to when she continued to run The Music Hub Plus.
"Ten years is a significant ban and should serve as a warning to others who run community interest companies that you are not immune from acting within the law when it comes to being a responsible company director."
Peter Storm Aldridge, 20, also from Ashford in Kent, who was director of The Music Hub when it entered liquidation, received a six-year ban.
The liquidator’s statement of receipts and payments, posted last year on the Companies House website, said The Music Hub Plus had assets of just £789.
The business department is listed as the only preferential creditor, with a claim for £8,841.
The liquidator’s statement adds that about 27 unsecured creditors have claims of £65,954 and none are expected to receive payment.
The Music Hub Plus website remains active, but Third Sector was unable to contact anyone using the details provided.
Third Sector contacted the business department for details of its award to the company but did not receive a response before publication of this article.