Nahim Mohammed Banaras, the director of a meat wholesaler, was disqualified for seven years for failing to keep proper books and*records.
The Secretary of State for Business, Energy and Industrial Strategy accepted a seven year disqualification undertaking from Mr Banaras which bans him, from 12 June 2017, from acting as a company director or from managing, or in any way controlling, a limited company until 2024.
North East Meats Limited (NEM) which traded from Boosbeck,Cleveland, went into liquidation on 20 August 2015 owing ?1,128,393. An Insolvency Service investigation into NEM found that from at least 12 March 2014 Mr Banaras failed to maintain, preserve and deliver up records that were adequate to explain the financial position of NEM.
In the absence of complete records, it was not possible to determine the legitimacy of at least ?195,476 of credit stated to have been granted to a connected company for the destruction of purchased livestock. Furthermore, NEM?s books and records had no evidence to verify the destruction of at least 2,827 such animals. It was also not possible to determine the legitimacy of management charges paid by NEM to a connected company totalling ?450,000.
Aldona O?Hara, Chief Investigator of Insolvent Investigations Midlands & West at the Insolvency Service, said:
Company 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 their duties properly, or is using a lack of documentation as a cloak for impropriety.
This director has paid the price for failing to do that, as he cannot now carry on in business other than at his own risk.