Three directors of a Bolton company, Bilal Poultry Products Limited, which processed and supplied poultry products to the food industry, have been disqualified from acting as company directors or in the management of a company for five-and-a-half years each, for failing to keep proper books and records or pay taxes.
The disqualifications, which started on 31 January 2014, follow an investigation by the Insolvency Service.
Abdullah Rana (45), Bilal Rana (38) and Mahmud Akhtar (43) all gave undertakings to the Secretary of State for Business, Innovation & Skills, not to act as directors until 31 July 2019, without leave of the court.
The three directors did not dispute that:
They failed to ensure that the company maintained adequate accounting records. As a result it wasnt possible for the liquidator to collect 24,800 believed to be owed to the company, or establish what had happened to computers and accessories bought for 10,000 shortly before the insolvency.
The poor quality of the records provided also meant that it wasnt possible to accurately determine the sales income of the company or account for payments to the directors, including two payments of 20,000 just three months before the company failed.
They failed to ensure that the company filed tax returns with H M Revenue & Customs or made full payment of its tax debts, leaving at least 46,411 outstanding at liquidation.
Commenting on the disqualifications, Robert Clarke, Head of Insolvent Investigations North at the Insolvency Service, said:
Directors have a duty to make sure 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.
These three directors have paid the price for failing to do that, as they cannot now carry on in business other than at their own risk.