Restaurant company director gets 7 year ban for employing illegal workers
Syed Ahmed, the sole registered director of Hook Tandoori Limited, which traded as an Indian restaurant in Hook, Hampshire, has been disqualified from acting as a company director for seven years from 7 September 2016 for employing three workers who did not have the right to work in the UK.
Mr Ahmed’s disqualification follows collaboration between the Insolvency Service and Home Office Immigration Enforcement (formerly UK Border Agency).
The Secretary of State for Business, Innovation and Skills (now The Secretary of State for Business, Energy and Industrial Strategy) brought proceedings against Syed Ahmed and on 8th August 2016 the case was heard at Guildford County Court. Upon hearing the evidence, and with Mr Ahmed failing to appear in court, a seven year disqualification order was made against Mr Ahmed who was also ordered to pay costs being in excess of £4,600. Having inspected the premises of Hook Tandoori Limited in October 2013, UK Border Agency officials found three illegal workers and imposed a penalty of £15,000.
Less than one week following UK Border Agency officials visiting the restaurant Syed Ahmed made a series of regular payments to himself amounting to £15,000. The company did not pay the £15,000 penalty imposed by the UK Border Agency and ceased trading in January 2014.
At liquidation in January 2014, the company had a recorded deficiency in excess of £126,000 including £15,000 owed to the UK Border Agency in respect of the penalty imposed for employing three illegal workers.
The disqualification order means that Syed Ahmed can not be a director of a company whether directly or indirectly, or be involved in the management of a company in any way for the duration of his disqualification unless he has permission from Court.
Commenting on the disqualification, Lawrence Zussman, Deputy Head of Investigations with the Insolvency Service said:
The Insolvency Service rigorously pursues directors who fail to pay penalties imposed by the government for breaking employment and immigration laws. We have worked closely in this case with our colleagues at the Home Office to achieve this disqualification.
The director sought to gain an unfair advantage over his competitors by employing individuals who did not have the right to work in the UK in breach of his duty as a director.
The public has a right to expect that those who break the law will face the consequences. Running a limited company, means you have statutory protections as well as obligations. If you fail to comply with your obligations the Insolvency Service will investigate and you run the risk of being removed from the business environment.
Notes to editors
Syed Ahmed, 53 (date of birth: November 1962), of Hampshire, was the sole registered director of Hook Tandoori Limited, which was incorporated in 1995 and traded as an Indian Restaurant from Hook, Hampshire. Mr Ahmed has been disqualified for a period of 7 years commencing from 7 September 2016.
One of the main purposes of the Company Directors Disqualification Act is to ensure that proper standards of conduct of company directors are maintained and to raise those standards where appropriate.
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
Persons subject to a disqualification order are bound by a range of other restrictions. 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: 30 September 2016
From: The Insolvency Service