Javed-Yacub Fozdar and Riyaz Dawood Fozdar, directors of Pound Empire Ltd, a retail business operating in Stockport, Manchester, Liverpool and Warrington, have been disqualified from acting as company directors for 10 years each, for failing to ensure the company preserved or delivered up adequate accounting records.

The disqualifications, which starts on 15 November 2014 following an investigation by the Insolvency Service, were ordered by District Judge Dignan at the County Court at Stockport.

The failure to keep or deliver up adequate accounting records meant it was not possible to establish the income, primarily in cash, and expenditure of the company , notably the payee and purpose of over 900,000 worth of cheques, nor has s been possible to establish the level of directors drawings .

The investigation found the directors entered into a transaction on 25 January 2012, the date the company stopped trading, which transferred the assets (mainly stock, some of which was subject to retention of title), to a company owned by the wife of Javed Fozdar as repayment of a debt stated by the directors to have been owed to the connected company. No evidence of this debt was ever produced. As a result of this transfer, these assets were not made available to the creditors nor could the holders of the retention of title recover their goods.

Commenting on the disqualifications, Robert Clarke, Head of Insolvent Investigations North at the Insolvency Service said:

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 his duties properly, or is using a lack of documentation as a cloak for impropriety.

The transfer of all the assets of the company to a connected party is a clear breach of the duties directors owe their creditors.

Javed-Yacub Fozdar and Riyaz Dawood Fozdar have paid the price for failing to fulfil their obligations as directors and they cannot now carry on in business other than at their own risk.