Pulse.Assent

Mr Mohammed Miah and Mrs Anwara Miah, were both directors of Murrayfield Developments Limited (MDL), which was incorporated in 2004 and traded as The Original Raj Hotel in Edinburgh.

From January 2012, Mr and Mrs Miah were joint directors of MDL and the company ceased trading on 19 November 2015 and went into liquidation on 9 December 2015 owing creditors over £260,000.

An investigation by the Insolvency Service, which followed the liquidation, led to a trial.

The court heard that the Insolvency Service investigation found Mr and Mrs Miah failed to preserve or deliver up the accounting records for MDL to the liquidator, as they were required to by insolvency law. This meant it wasn’t possible to account for over £1 million paid out from the company’s bank account, including cheques written to cash after the commencement of winding up proceedings. This was aggravated by the directors’ failure to provide a statement of affairs to the liquidator.

It was also found that Mr and Mrs Miah caused MDL to trade to the detriment of HMRC whilst insolvent from 1 January 2014 to the date of liquidation resulting in a tax debt of at least £228,920.

In the absence of either Mohammed Miah or Anwara Miah at the court hearing, the Sheriff granted a disqualification order against both Mr and Mrs Miah.

The disqualification commenced on 6 March 2018 and is effective until 6 March 2025.

Robert Clarke, Head of Company Investigation at the Insolvency Service said:

Directors have a duty to ensure that their companies maintain proper accounting records, and, following insolvency, deliver them to the office-holder in the interests of fairness and transparency.

Without a full account of transactions it is impossible to determine whether a director has discharged his duties properly, or is using a lack of documentation as a cloak for impropriety.

Notes to editors

Murrayfield Developments Limited (Company number SC262655), was incorporated in 2004.

Mr Mohammed Miah’s date of birth is March 1959. He was appointed as a director of MDL on 30 January 2012 and remained in office until the date of liquidation. Mrs Anwara Miah’s date of birth is June 1960. She was appointed as a director of MDL on 2 February 2004 and remained in office until the date of liquidation.

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 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.

Contact Press Office

Media enquiries for this press release – 020 7674 6910 or 020 7596 6187

You can also follow the Insolvency Service on:

• Twitter
• LinkedIn
• YouTube

Naeem Javed was a director of Petal (Scotland Ltd (PSL) , from 2004 until the company ceased trading on or around 20 July 2016 and went into liquidation on 29 November 2016.

Once the company entered liquidation, Mr Javed failed to deliver up the company’s accounting records as required by insolvency law. This hampered the investigation and the potential recovery of assets for the benefit of creditors.

An investigation by the Insolvency Service, following the conclusion of the liquidation, found that between 23 December 2015 and 31 December 2015 Mr Javed removed funds totalling £85,000 which had been obtained through false indemnity claims resulting in a loss to the company’s bank.

It was also found that between 13 April 2016 and 31 May 2016 Mr Javed used the company to obtain Marks & Spencer gift cards on credit, at a time when the company had unpaid liabilities of at least £161,077 and insufficient funds to pay for these. This resulted in a loss of £90,000 to the creditor.

On 27 April, Mr Javed gave an undertaking to the Secretary of State for Business, Energy & Industrial Strategy, which, from 18 May 2018, prevents him from directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company or limited liability partnership for 11 years.

Robert Clarke, Head of Company Investigation at the Insolvency Service said:

The Insolvency Service will rigorously pursue company directors who deliberately defraud their stakeholders for their personal gain. Fair treatment of business partners and creditors is essential for business confidence which is, in turn, essential for economic growth.

The substantial period of the undertaking agreed illustrates that Mr Javed has paid the price for his conduct, and cannot now carry on in business other than at his own risk.

Notes to editors

Petal (Scotland) Ltd (Company No. SC273151) traded as a Spar convenience store from premises at 1357-1359 Barrhead Road, Glasgow.

The company was incorporated in 2004 and was ordered into compulsory liquidation in December 2016.

Mr Javed’s date of birth is February 1972. He was appointed director of PSL on 15 October 2004 and remained in office until the date PSL ceased to trade.

Mr Javed signed an undertaking for 11 years, which was agreed on 27 April 2018. The disqualification commences on 18 May 2018 and is effective until 18 May 2029.

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 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 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.

Contact Press Office

Media enquiries for this press release – 020 7674 6910 or 020 7596 6187

You can also follow the Insolvency Service on:

• Twitter
• LinkedIn
• YouTube

• government acts to improve services for grieving families
• coroner services and information will be easier to access for all
• changes will make sure those grieving are at heart of the system

Senior Coroner Claire Bailey has already overseen significant improvements in Teesside, drastically reducing waiting times for families finding out the cause of death of a loved one. The average time taken to complete an inquest at Teesside has been cut from circa 50 weeks in 2013 to circa 11 weeks in 2017. The national average time to complete an inquest is 21 weeks.

The merger of Teesside and Hartlepool coroner services will build on this work, ensuring local families benefit from a more efficient inquest process and greater accessibility to services right across the region. Claire Bailey, who has also been the acting Senior Coroner for Hartlepool, will be permanently appointed the position for the combined area. No courts or inquest venues will close as a result of the merger.

Justice Minister Edward Argar said:

We are reforming the coroner system to ensure those who are grieving do not face the additional stress of poor service and lengthy inquest delays.

As a result of this merger, bereaved families across Teesside and Hartlepool will now benefit from a higher standard of service during their time of need.

I look forward to seeing Claire drive through these improvements, while ensuring the needs of grieving people are at the heart of the system.

The government is committed to raising the standards of coroner services across England and Wales. The Ministry of Justice has carried out a number of reforms to improve coroner services, including the creation of a new national code of practice, and the appointment of the first ever Chief Coroner of England and Wales to oversee the system.

Teesside has already taken steps to improve performance, including by introducing a new website to improve access to services. However, this amalgamation will ensure best practice is shared across the region.

Notes to editors

• The merger of the Teesside and Hartlepool coroner areas was first consulted on in 2015, following the retirement in April 2013 of the then Senior Coroner for Teesside, Michael Sheffield. Following the consultation, the MOJ, in agreement with the Chief Coroner, decided not to proceed until the selection of a Senior Coroner for the area had been agreed.
• All relevant local authorities agree with the proposal to appoint Clare Bailey as Senior Coroner for the combined area.
• A wide range of stakeholders have been consulted on this merger, including local MPs and councillors, coronial office holders including coroners in neighbouring coroner areas, coroner’s officers and administrative staff, police, hospital trusts, prisons, funeral directors and faith communities as well as the Chief Coroner.
• Hartlepool had the lowest number of deaths in England and Wales in 2017 (246 deaths, and 12 inquests opened). Average time taken to complete an inquest at Hartlepool was 15 weeks in 2017.
• The newly merged coroner area of Teesside and Hartlepool is due to come into force on 1 August.
• MOJ has carried out considerable reforms to improve coroner services across England and Wales and increase consistency of practice between coroner areas. These include:
  • creation of a new national code of practice – setting out what service and standards bereaved people can expect from coroners
  • creation of a Chief Coroner of England and Wales to oversee the coroner system
  • requiring inquests to be completed within 6 months of the date on which the coroner is made aware of the death, unless there are good reasons not to
  • requiring coroners to notify those who are bereaved within a week of setting the date for the inquest
  • requiring coroners to notify those who are bereaved of the date of the inquest within a week of setting the date
  • providing greater access to documents and evidence, such as post-mortem reports, before the inquest takes place, to enable bereaved families to prepare for the hearing
  • permitting less invasive post-mortem examinations
  • speeding up the release of bodies after post-mortem examination, and requiring coroners to notify the deceased’s next of kin or personal representative if the body cannot be released within 28 days.
• For more information contact the MOJ press office on 0203 334 2892.