Nicholas Constable, 59, of Weybridge, Surrey, and director of Xenex Developments Ltd – which traded as a property development company – has been disqualified for failing to ensure the company dealt with its rental income in the correct manner or maintained or preserved adequate accounting records.

This disqualification prevents him from directly or indirectly becoming involved in the promotion, formation or management of a company for the duration of the term.

An Insolvency Service investigation found that Constable diverted rental income totalling nearly £900,000 into his personal bank account and that of another connected company.

This action contravened the terms of a legal charge and resulted in missed interest of nearly £400,000 for the charge holders.

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The accounting records failed to confirm the actual level of creditors of the company or the balance on the director’s loan account from 31^st October 2014 to the date of the administration on 17^th November 2015.

Constable also failed to provide accounting records which would verify whether £679,063 had ever been repaid or used for the benefit of the company’s creditors.

Robert Clarke, group leader of Insolvent Investigations at the Insolvency Service, said: “In this particular case, the director failed to act in the best interest of the company and its creditors and failed to ensure that the company operated in a transparent way by providing sufficient records to explain company transactions.

“This disqualification should serve as a reminder to other company directors who are tempted to operate in a similar way that the Insolvency Service will rigorously pursue enforcement action and seek to remove the protection of limited liability from them.”