Mohamed Inam Anwar, the director of a Cardiff computer supply company which went into liquidation owing 492,790 to creditors, has been disqualified from acting as a director for 8 years at Cardiff County Court, for failing to keep proper accounting records.
The lack of records meant it was not possible to establish why certain payments were made, or whether these were in the genuine course of business.
Mr Anwars disqualification follows an investigation by the Insolvency Service.
Mohamed Inam Anwar, 52, of Cardiff, was the director of Land of Computers Ltd from April 2011 to March 2013 when the company went into liquidation.
On 25 August 2015, District Judge James made an Order for 8 years against Mr Anwar which, from 15 September 2015 bans him from acting as a company director or managing or in any way controlling a limited company until 2023.
The investigation found Mr Anwar had not produced adequate company accounting records. Without them, there was no way to verify that 47,600 withdrawn in cash, 164,348 in cheques and 53,480 in transfers out of the business bank account were for legitimate business uses. Nor was not possible to verify why 90,975 was paid for machinery that was delivered to Pakistan or establish what happened to money from cash sales from September 2012 to March 2013, the date of liquidation.
Commenting on Mr Anwars disqualification Sue MacLeod, Chief Investigator of Insolvent Investigations, Midlands & West at the Insolvency Service, said:
Every director has a duty to ensure adequate records are kept of business transactions and we discovered a lack of transparency in what went on in Land of Computers Limited.
As a consequence of the convincing evidence we presented to the judge, Mr Anwar has been banned from being a director for eight years. This means he cannot continue in business, other than at his own risk.