Mohamed Inam Anwar, the director of a Cardiff computer supply company which went into liquidation owing £492,790 to creditors, has been disqualified from acting as a director for 8 years at Cardiff County Court, for failing to keep proper accounting records.
The lack of records meant it was not possible to establish why certain payments were made, or whether these were in the genuine course of business.
Mr Anwar’s disqualification follows an investigation by the Insolvency Service.
Mohamed Inam Anwar, 52, of Cardiff, was the director of Land of Computers Ltd from April 2011 to March 2013 when the company went into liquidation.
On 25 August 2015, District Judge James made an Order for 8 years against Mr Anwar which, from 15 September 2015 bans him from acting as a company director or managing or in any way controlling a limited company until 2023.
The investigation found Mr Anwar had not produced adequate company accounting records. Without them, there was no way to verify that £47,600 withdrawn in cash, £164,348 in cheques and £53,480 in transfers out of the business bank account were for legitimate business uses. Nor was not possible to verify why £90,975 was paid for machinery that was delivered to Pakistan or establish what happened to money from cash sales from September 2012 to March 2013, the date of liquidation.
Commenting on Mr Anwar’s disqualification Sue MacLeod, Chief Investigator of Insolvent Investigations, Midlands & West at the Insolvency Service, said:
Every director has a duty to ensure adequate records are kept of business transactions and we discovered a lack of transparency in what went on in Land of Computers Limited.
As a consequence of the convincing evidence we presented to the judge, Mr Anwar has been banned from being a director for eight years. This means he cannot continue in business, other than at his own risk.
Notes to editors
Land of Computers Ltd (Company Registration Number 04943838) was incorporated on 27 October 2003.
Land of Computers Limited traded from 103 City Road, Cardiff CF24 3BN.
Mr Mohamed Inam Anwar was a director of Land of Computers Limited from 11 April 2011 to 19 March 2013 (the date of liquidation).
An Order banning Mr Anwar from being a director for 8 years, to be effective from 15 September 2015, was made at Cardiff County Court on 25 August 2015 by District Judge Hywel James.
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 is available.
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: 5 October 2015
From: The Insolvency Service