Adsearch (UK) Ltd invoiced local businesses in connection with
advertisements it said had appeared. But an investigation by The
Insolvency Service found no evidence of website development after
nine months of the company's existence.
The Companies Investigations Branch of The Insolvency Service,
which works on behalf of the Department of Business, Enterprise
& Regulatory Reform, said that the company did not appear to
have undertaken work it might expected to have.
"Despite the fact that the company had been trading for more
than nine months by the time the investigation commenced, no
website had been created and no evidence of development could be
produced to the Investigator," said a statement from The Insolvency
Service.
The investigation found that the company had earned income
during its existence, despite a seeming lack of publication
activity. "Nevertheless, the Investigator was able to show that the
company's bank account had received more than £22,000 and that it
had failed to maintain or preserve any records to show where these
funds had emanated or to whom they had been paid out," said the
Service.
The investigation also found that the company's only director
had not exercised the kind of control over the firm that it would
hope for.
"The sole director of the company had made no attempt to monitor
or control representations made to advertisers, had only attended
its business premises intermittently and for short periods, had
failed to take adequate steps to safeguard the company's accounting
records and had, therefore, failed to exercise proper stewardship
of its affairs," said the statement.
The Insolvency Service said that the company was insolvent, that
it could not meet its ongoing obligations, and had it wound up.
