Ranjit Johal, the sole director of Bosif Ltd, a take-away pizza franchise in Lincoln city centre, has been disqualified from acting as a director from 2 January for failing to keep adequate accounting records or pay VAT to HM Revenue & Customs (HMRC).
Mr Johals disqualification follows an investigation by the Insolvency Service. He gave an undertaking to the Secretary of State for Business, Innovation & Skills not to manage or control a limited company for seven years until 2021 without leave of the court.
Mr Johal, 53, was prosecuted by HMRC on 25 June 2012 for failing to provide a financial bond for Bosif Ltd as required by HMRCs rules, following the previous failure of another company he had run from the same premises and which also had not paid VAT to HMRC.
This pattern was repeated in the case of Bosif Ltd and, in addition, the companys books and records did not sufficiently account for over 600,000.00 of sales and cash withdrawals.
Robert Clarke, Head of Insolvent Investigations North, which is part of the Insolvency Service said:
When directors of a failed company show no evidence of learning from the previous failure by repeating the same actions, their conduct will be investigated closely by the Insolvency Service.
Companies, especially those based in a largely cash-based business, should ensure that their records are sufficient to show how money has been used. Directors of companies that fail to do this will face disqualification for a considerable period of time.