Mr Ashraf Ali, also known as Mr Elyas Sultan Ali, of Glasgow has been disqualified as a director for eight years for failing to ensure that adequate books and records of the company, Greencrescent Limited, were preserved and/or delivered up to the liquidator

Mr Ali (55) was the sole director of Greencrescent Limited, a restaurant/takeaway, trading as Shimla Pinks, in William Street, Johnstone, from 22 September 2011 until it went into liquidation on 29 November 2013 with an estimated deficiency of 255,701.

Mr Ali gave an undertaking to the Insolvency Service not to act as a director or be involved in the management of a limited company from 9 February 2016.

The failure to ensure that adequate books and records of the company were preserved and/or delivered up to the liquidator means it has not been possible to ascertain the accuracy of late VAT returns submitted by Mr Ali or the true level of liability owed to HM Revenue & Customs for VAT.

It has also not been possible to ascertain what became of company assets valued at 34,679 and as no company bank statements were produced or could be obtained, it is not known what income or expenditure was made into our out of the company bank account and whether any expenditure was for the benefit of the company.

Commenting on the disqualification, Robert Clarke, Head of Company Investigation at the Insolvency Service said:

Directors have a duty to ensure that their companies maintain proper accounting records, and, following insolvency, deliver them to the office-holder in the interests of fairness and transparency. Without a full account of transactions it is impossible to determine whether a director has discharged his duties properly, or is using a lack of documentation as a cloak for impropriety.

Where records are held electronically, the expectation is that a company will keep a separate, up to date, back-up in a secure location. Mr Ali has paid the price for failing to do that, as he cannot now carry on in business for the duration of his ban other than at his own risk.