Three company directors of Shalam UK Ltd (Shalam UK') have been disqualified for a total of 14 years for neglecting the companys tax affairs and allowing the transfer of 4.5m of assets to a connected company, to the detriment of creditors.
The disqualifications, which started on 7 November 2013, 8 January 2014 and 7 November 2013, follow an investigation by the Insolvency Service.

Steven Burrow (54) and Yehuda Shalam (79) each signed six-year disqualification undertakings, while Kevin Lammin (50) gave a two-year undertaking. The disqualifications prevent them from acting as company director without leave of the court, for the duration of the ban.

In signing these undertakings, the directors accepted that Mr Burrow caused - and Mr Shalam allowed - plant, machinery and stock worth over 4.5million to be transferred to a company operating the same type of business from the same address and in which Mr Shalam had an ultimate interest. Shalam UK received no consideration for this transfer which prejudiced other creditors owed over 2million.

The investigation showed that the directors failed to ensure that Shalam paid all its taxes during the 3 years it traded, despite the company records showing that tax of over 1.3million - much of which were deductions from employees salaries - was due. The company only paid 10,300 to HMRC in respect of these taxes.

Commenting on the disqualification, Susan MacLeod, Chief Investigator at the Insolvency Service, said:

These actions not only deprived the taxpayer of money, but gave the company an unfair trading advantage over its competitors.

If you run a business in a way that is unfairly detrimental to its creditors, you will be investigated and it may well lead to your removal from the business environment"