Abdul Malik, a director of both M & M Leisure (UK) Ltd and Seama Group Ltd, which traded as an Indian restaurant under the style of Raval Restaurant, has been disqualified from acting as a director for seven years for failing to maintain, preserve and/or deliver accounting records for the companies.
An investigation by the Insolvency Service found that there was confusion as to which company was actually trading the restaurant and that over 75,000 could not be accounted for.
On 21 December 2015, the Secretary of State accepted a disqualification undertaking from Abdul Malik, from 11 January 2016, for 7 years, which prevents Mr Malik from directly or indirectly becoming involved in the promotion, formation or management of a company for the duration of the term.
The restaurant, named North East Restaurant of the Year at the British Curry Awards in 2013, was run by Mr Malik but it was unclear under which company the business actually traded.
The investigation discovered the two companies only had one bank account between them and that over 50,000 of sales income was not banked. Furthermore, over 25,000 of expenditure in cash and cheque payments could not be explained.
Both Seama Group Ltd and M & Leisure (UK) Ltd were placed into creditors voluntary liquidation on 12 September 2013 with deficiencies of 65,585 and 128,056 respectively.
Commenting on the disqualification, Robert Clarke, Investigations Group Leader at the Insolvency Service said:
Company Directors should be aware of their statutory obligations to maintain proper accounting records for their companies so that should they cease trading creditors are satisfied that all income generated can be properly accounted for.
Where records are not sufficient to establish this, the Insolvency Service will investigate and pursue those directors who have failed in their responsibilities.