Dr Tapeshwar Anand has been disqualified as a director after spending over £1 million of company money on a property in a French ski resort
Dr Tapeshwar Anand, the sole director of Q Healthcare Ltd, which traded as Q Clinic from premises in Harley Street, London, has signed an undertaking to be disqualified as a director for seven years after spending over £1 million of company money, received from patients for dental treatments, on a personally-owned property in Combloux, France.
The funds were spent between July 2009 and March 2013, resulting in the company falling into arrears with paying its liabilities to creditors.
At the date the company entered into administration, no value was listed against the expenditure as an asset, as the company had no legal interest in the overseas property, resulting in a deficiency as regards creditors of £1,080,093.
In agreeing a disqualification undertaking Mr Anand accepted that while a director of Q Healthcare Limited, he breached his fiduciary duties and failed to act in the best interests of the company and its creditors. Specifically, by causing the company to incur expenditure of at least £1,040,254 between July 2009 and March 2013 on an overseas property which he owned personally, and over which the company had no legal charge or security.
Commenting on the disqualification, Martin Gitner, Deputy Head of Investigations at the Insolvency Service, said:
It is clear that Dr Anand breached his duties as a director by using company funds to finance the refurbishment of a personally owned property, which means taxpayers and other creditors, lose out considerably.
This disqualification should serve as a warning that if directors behave in this way their conduct will be investigated fully by the Insolvency Service and they will be removed from the business environment.
Notes to editors
Dr Anand’s date of birth is February 1974 and he currently resides in New Delhi, India.
Q Healthcare Ltd (CRO No. 04369068) was incorporated on 7 February 2002 and latterly traded from 139 Harley Street, London W1G 6BG providing dental health treatment.
Dr Anand was a director from incorporation.
The Company went into Administration on 21 May 2013 with an estimated deficiency of £1,080,093.
On 20 March 2017, the Secretary of State accepted a Disqualification Undertaking from Tapeshwar Anand, effective from 10 April 2017, for 7 years.
At the time of the expenditure the company was insolvent on a balance sheet basis. The source of funds used to pay for the overseas property was monies received from patients for the provision of dental treatments.
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.
Between June 2010 and April 2013 at least 137 reminders, pressing letters and/or warnings of proposed legal actions were sent by suppliers.
By March 2011 the company was in arrears with paying its taxation liabilities to H M Revenue & Customs (HMRC) and by June 2012 HMRC took enforcement action in respect of unpaid tax liabilities totalling £124,970.
By May 2011 the company was in arrears with making payments to the key supplier of dental products; in 2012 the key supplier placed restrictions, and ultimately a stop, on the supply of further goods to the company as a result of the arrears.
By April 2013 winding up proceedings were being commenced against the company by two creditors: HMRC for tax liabilities of £87,449 and a credit finance provider for liabilities of £46,062.
The company went into Administration on 21 May 2013 owing unsecured liabilities to unconnected parties totalling £431,518 (comprising £117,029 to patients for dental treatments not supplied; £180,569 to trade & expense suppliers; £113,691 to HMRC for tax; £20,229 to a bank) and unsecured liabilities to me totalling £836,684.
Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.
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Published: 7 April 2017
From: The Insolvency Service