Azfal Shaheen and Waris Ali, of Lifestyle Homes (UK) Ltd, a property development company, have been disqualified for 4 and 3 years respectively for failing to protect, properly use or return money paid into the company by a client.
The disqualifications of Azfal Sheen (from 8 June) and Waris Ali (from 23 June), follow an investigation by the Insolvency Service into their conduct as directors of the company.
Both Mr Shaheen (63), and Mr Ali (51), have given undertakings to the Secretary of State for Business, Innovation & Skills, which will prevent them from becoming involved in the promotion, formation or management of a company for the duration of their bans.
The investigation found Lifestyle Homes (UK) Ltd failed to protect funds paid in by a client for their intended use and was unable to return them once they were requested back by the client. The client obtained a county court judgment on 29 June 2014 for £64,013, which was never paid.
Furthermore, Mr Shaheen, who was not formally appointed as a director, was found to be acting as a director of the company.
Sue MacLeod, Chief Investigator at the Insolvency Service, commented:
In investigating insolvent companies, the Insolvency Service seeks to test whether a person acted as a director. Where there are unfit actions by a person acting as a director, they will be disqualified.
These disqualifications demonstrate that the Insolvency Service will use its enforcement powers to remove irresponsible directors from benefitting from the protection provided by limited liability in the business environment.
Notes to Editors
Lifestyle Homes (UK) Ltd (CRO No. 05484630) was incorporated on 20 June 2005 under company registration number. The registered office was 234 Corporation Road, Newport, Wales NP199 0DZ.
Afzal Shaheen (also known as Mohammad Afzal Shaheen), of Gwent, date of birth 1 November 1951, was not formally appointed as a director. The commencement date of the disqualification undertaking is 8 June 2015.
Waris Ali, of Newport, date of birth 13January 1991 was appointed on 30 June 2005. The commencement date of the disqualification undertaking is 23 June 2015.
Lifestyle Homes (UK) Ltd was subject to a creditors’ voluntary liquidation on 13August 2012 and had an estimated deficiency of £578,750.
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.
Published: 2 July 2015
From: The Insolvency Service