Two company directors from Salford have been disqualified from their roles for failing to keep adequate accounting records.
Javed-Yacub Fozdar, 38, and Riyaz Dawood Fozdar, 37, who managed Pound Empire Ltd in Stockport have been banned for 10 years each.
Failure to keep records made it impossible to establish the company’s income and expenditure including the payee and purpose of more than £900,000 in cheques, as well as the level of director’s drawings.
Head of Insolvent Investigations North at the Insolvency Service, Robert Clarke, 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.”
He added: “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.”
The investigation revealed the directors had transferred company assets to a company owned by Mr Fozdar’s wife in 2012, as repayment of a debt – the evidence of which was never produced.
Without the specific permission of the court, the pair from Salford cannot take part in promotion, formation or management of any company, nor can they act as director or insolvency practitioner.
Image courtesy of Images of Money, with thanks.
