Tahmina Hamed, director of Idris Nurseries Limited (Idris), has been disqualified from acting as director for a period of eight years for misappropriating the company?s cash assets.

Her disqualification undertaking, given to the Secretary of State for Business, Energy and Industrial Strategy, prevents Mrs Hamed, from 1 November 2016, from directly or indirectly becoming involved in the promotion, formation or management of a company for the duration of the term.

Mrs Hamed was disqualified from acting as director for having breached her fiduciary duty to Idris after she misappropriated at least ?41,274.39 of the company?s cash assets immediately prior to liquidation, which at the time were subject to a charge in favour of the company?s bankers.

An investigation by the Insolvency Service found that in the six week period immediately prior to placing Idris into Creditors? Voluntary Liquidation, Mrs Hamed made nine payments to eight individuals totalling ?36,274.39 and one cash withdrawal of ?5,000 from the net proceeds from the sale of the company?s day nursery business in February 2015.

Having transferred these funds, Mrs Hamed then placed Idris into Creditors? Voluntary Liquidation on 7 April 2015 with a deficiency of ?151,840 and no assets available for creditors.

Commenting on the disqualification, Robert Clarke, Investigations Group Leader at the Insolvency Service said:

Fair treatment of creditors is essential for business confidence which is, in turn, essential for economic growth.

The undertaking signed by Tahmina Hamed sends a clear message to other company directors that the Insolvency Service will rigorously pursue those who deliberately seek to place funds out of the reach of creditors. The result is they will not be able to carry on in business with the protection of limited liability.