Kong Yew Cheng, a director of The China Banquet Ltd, has signed a undertaking preventing him from acting as a company director for five years from 1 December 2016.
An Insolvency Service investigation found he failed to ensure the company kept proper books and financial records.
The disqualification means Mr Cheng cannot control or manage a limited company for the duration of the ban.
The Insolvency Service’s investigation found Mr Cheng failed to exercise proper control over the company’s affairs, and as a result failed to maintain adequate accounting records and/or failed to safeguard and deliver up to the Liquidator such records as were maintained.
As a result, certain aspects of The China Banquet Ltd’s trading could not be explained, including the date that it ceased trading, its income and expenditure, its assets and liabilities, and the recipients and/or purpose of various payments made from the company’s bank account during the period of trade totalling £144,816.
The matters of unfitness, which Mr Cheng did not dispute in the Disqualification Undertaking, were that between 13 November 2012 at the latest, and the date of Liquidation on 23 January 2015, while sole director of The China Banquet Limited, he failed to exercise proper control over China’s affairs and as a result, failed to ensure the company maintained adequate accounting records and/or failed to safeguard and deliver up to the Liquidator such records as were maintained. It was therefore not been possible to ascertain and verify:
- the date that China Banquet ceased trading
- the income and expenditure of China Banquet between the commencement of trading and the date of liquidation, in particular any transactions conducted in cash
- China Baquet’s assets and liabilities at the date of Liquidation
- the purpose and recipients of cash withdrawals between 6 December 2012 and 5 June 2014 totaling £14,731
- the purpose and recipients of cheque payments made between 11 December 2012 and 25 March 2014 totaling £61,460
- the purpose of payments made to three individuals between 20 December 2012 and 25 April 2014 totaling £68,625
Robert Clarke, Head of Insolvent Investigations North at the Insolvency Service, 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. Mr Cheng has paid the price for failing to do that, as he cannot now carry on in business other than at his own risk.
Notes to editors
Mr Cheng’s date of birth is September 1973 and he resides in Manchester.
The China Banquet Limited (CRO No. 08275235) was incorporated on 31 October 2012 and traded from 190-194 Bury New Road, Manchester, M45 6QF.
Mr Cheng was a director from 13 November 2012 until the company went into liquidation on 23 January 2015.The estimated deficiency at the date of Liquidation was £66,097.
On 10 November 2016, the Secretary of State accepted a Disqualification Undertaking from Kong Yew Cheng, effective from 01 December 2016, for 5 years.
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
Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Persons subject to a disqualification order are bound by a range of other restrictions.
The Insolvency Service, an executive agency sponsored by the Department for Business, Energy and Industrial Strategy (BEIS), administers the insolvency regime, and aims to deliver and promote a range of investigation and enforcement activities both civil and criminal in nature, to support fair and open markets. We do this by effectively enforcing the statutory company and insolvency regimes, maintaining public confidence in those regimes and reducing the harm caused to victims of fraudulent activity and to the business community, including dealing with the disqualification of directors in corporate failures.
BEIS’ mission is to build a dynamic and competitive UK economy that works for all, in particular by creating the conditions for business success and promoting an open global economy. The Criminal Investigations and Prosecutions team contributes to this aim by taking action to deter fraud and to regulate the market. They investigate and prosecute a range of offences, primarily relating to personal or company insolvencies.
The agency also authorises and regulates the insolvency profession, 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: 14 March 2017
From: The Insolvency Service