6-year director disqualification for employing illegal worker
Akbar Bari of Indian Palace Express Ltd has been banned from acting as a director for allowing the company to employ an illegal worker.
The disqualification follows an investigation by the Insolvency Service’s Insolvent Investigations Team.
On 21 February 2016, Mr Bari signed a disqualification undertaking which bans him from being a company director and from being involved in the management of a limited company in any way for a period of six years from 15 March 2016.
The business, an Indian take away, went into liquidation on 18 May 2015 owing £25,398 to creditors.
Mr Bari failed to ensure that Indian Palace Express Limited complied with immigration law resulting in the employment of an illegal worker. Following a visit from Home Office Immigration Officers on 10 September 2014, during which this breach was discovered, the company was fined a civil penalty of £15,000 by Home Office Immigration and Enforcement (HOIE). The company raised an objection but this was rejected by HOIE and the fine remained in place. The company failed to make any payment to HOIE.
Commenting on the disqualification, Mark Bruce, Chief Investigator for Insolvent Investigations South at the Insolvency Service, said:
This director sought an unfair advantage over their competitors by employing an individual who did not have the right to work in the UK.
The Insolvency Service rigorously investigates directors who breach employment and immigration legislation and this ban should act as a warning to other employers who are flouting the law. Directors who also seek to obtain commercial advantage over their competitors show a total disregard for the business community generally.
Notes to Editors
Indian Palace Express Limited (CRO No. 08409208) was incorporated on 19 February 2013 and went into creditors’ voluntary liquidation on 18 May 2015. Its registered office was at 95 Oldham Road, Rochdale, Lancashire, OL16 5QR.
Akbar Bari is of Lancashire and his date of birth is 6 August 1977.
A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:
act as a director of a company
take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
be a receiver of a company’s property
In addition that person cannot act as an insolvency practitioner and there are many other restrictions are placed on disqualified directors by other regulations.
Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Further information on director disqualifications and restrictions can be found here.
The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency authorises and regulates the insolvency profession, deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.
Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.
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Published: 18 May 2016
From: The Insolvency Service