Restaurant director disqualified for lack of accounting records

A restaurant manager has been disqualified from acting as a company director for seven years after failing to provide proper accounting records for his business.

Mr Ajaz Manan Din Mir was a registered director of Emerald City Ltd, which traded as Anokha Indian Bar and Restaurant in Burgon Street, London.

After the business went into liquidation, an investigation by the Insolvency Service found that Mr Mir’s accounting records were inadequate. It was not possible to verify what the total takings were including those made by cash and whether over £300,000 paid out from the company’s bank accounts related to bona fide business expenditure.

No wages records were provided either, so it was not possible to establish the position with regards employees and tax due.

Mr Mir had also failed to ensure that Emerald City Ltd had complied with its statutory obligations to HMRC. It had failed to submit a number of VAT returns and no annual accounts were filed with Companies House.

From September 2013 onwards, more than £332,000 was paid out from the accounts, of which, nothing was paid to HMRC in respect of the arrears of the VAT debt.

Commenting on the disqualification, Lawrence Zussman from the Insolvency Service, said: “The period of this disqualification sends a clear message that this kind of behaviour from company directors will not be tolerated. Company directors have a statutory duty under the Companies Act to keep adequate company records which should satisfactorily explain payments.

“If you fail to comply with statutory legislation, or if you treat creditors such as HMRC differently to others, then you have not taken your responsibilities as a director seriously and the Insolvency Service will not hesitate to investigate and you run the risk of being removed from the business environment.”

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