Kong Yew Cheng, a director of The China Banquet Ltd, has signed a undertaking preventing him from acting as a company director for five years from 1 December*2016.

An Insolvency Service investigation found he failed to ensure the company kept proper books and financial records.

The disqualification means Mr Cheng cannot control or manage a limited company for the duration of the ban.

The Insolvency Service?s investigation found Mr Cheng failed to exercise proper control over the company?s affairs, and as a result failed to maintain adequate accounting records and/or failed to safeguard and deliver up to the Liquidator such records as were maintained.

As a result, certain aspects of The China Banquet Ltd?s trading could not be explained, including the date that it ceased trading, its income and expenditure, its assets and liabilities, and the recipients and/or purpose of various payments made from the company?s bank account during the period of trade totalling ?144,816.

The matters of unfitness, which Mr Cheng did not dispute in the Disqualification Undertaking, were that between 13 November 2012 at the latest, and the date of Liquidation on 23 January 2015, while sole director of The China Banquet Limited, he failed to exercise proper control over China?s affairs and as a result, failed to ensure the company maintained adequate accounting records and/or failed to safeguard and deliver up to the Liquidator such records as were maintained. It was therefore not been possible to ascertain and verify:

the date that China Banquet ceased trading
the income and expenditure of China Banquet between the commencement of trading and the date of liquidation, in particular any transactions conducted in cash
China Baquet?s assets and liabilities at the date of Liquidation
the purpose and recipients of cash withdrawals between 6 December 2012 and 5 June 2014 totaling ?14,731
the purpose and recipients of cheque payments made between 11 December 2012 and 25 March 2014 totaling ?61,460
the purpose of payments made to three individuals between 20 December 2012 and 25 April 2014 totaling ?68,625

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. Mr Cheng has paid the price for failing to do that, as he cannot now carry on in business other than at his own risk.