Tahmina Hamed, director of Idris Nurseries Limited (Idris), has been disqualified from acting as director for a period of eight years for misappropriating the company’s cash assets.
Her disqualification undertaking, given to the Secretary of State for Business, Energy and Industrial Strategy, prevents Mrs Hamed, from 1 November 2016, from directly or indirectly becoming involved in the promotion, formation or management of a company for the duration of the term.
Mrs Hamed was disqualified from acting as director for having breached her fiduciary duty to Idris after she misappropriated at least £41,274.39 of the company’s cash assets immediately prior to liquidation, which at the time were subject to a charge in favour of the company’s bankers.
An investigation by the Insolvency Service found that in the six week period immediately prior to placing Idris into Creditors’ Voluntary Liquidation, Mrs Hamed made nine payments to eight individuals totalling £36,274.39 and one cash withdrawal of £5,000 from the net proceeds from the sale of the company’s day nursery business in February 2015.
Having transferred these funds, Mrs Hamed then placed Idris into Creditors’ Voluntary Liquidation on 7 April 2015 with a deficiency of £151,840 and no assets available for creditors.
Commenting on the disqualification, Robert Clarke, Investigations Group Leader at the Insolvency Service said:
Fair treatment of creditors is essential for business confidence which is, in turn, essential for economic growth.
The undertaking signed by Tahmina Hamed sends a clear message to other company directors that the Insolvency Service will rigorously pursue those who deliberately seek to place funds out of the reach of creditors. The result is they will not be able to carry on in business with the protection of limited liability.
Notes to editors
Idris Nurseries Limited (CRN 08605065) was placed into Creditors’ Voluntary Liquidation (CVL) on 07 April 2015 with a deficiency as regards creditors of £151,839. The company, which was incorporated on 10 July 2013, traded as a day nursery business from 10a Wisteria Road, Lewisham, London, SE13 5HN.
Mrs Hamed’s date of birth is 11 June 1984.
The Secretary of State accepted an undertaking from Tahmina Hamed that she would not act as director for a period of 8 years on 11 October 2016. The disqualification came into effect on 1 November 2016.
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: 30 November 2016
From: The Insolvency Service