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.
