I will let you know if the powers that be decide to stick Mr Ali before a judge, either way here are the details of this case.
On 19 May 2020 Mr Nejmi Emir Ali (“Mr Ali”) applied for and, subsequently, on 21 May 2020, obtained a Government-backed Bounce Back Loan (‘BBL’) of £45,000 for Cyprus Kebab House (Flimby) Ltd (“CKHFL”). CKHFL received £32,195, to which it was not entitled, as a result of Mr Ali providing false and/or inaccurate information regarding CKHFL’s estimated annual turnover.
In that:
Obtaining a BBL
- The BBL scheme permitted a loan of up to 25% of a business’ estimated annual turnover in circumstances where the applicant company commenced trading after 01 January 2019
- CKHFL commenced trading on or around 18 February 2019
- CKHFL opened a bank account with Lloyds Bank Plc on 25 January 2019
- The first transaction on the account occurred on 18 February 2019
- Gross receipts into the account for the period of 12 months from 18 February 2019 until 17 February 2020, totalled £51,220
- On 19 May 2020 Mr Ali applied for a BBL of £45,000 and stated that CKHFL’s estimated turnover was £190,000
- Based on the receipts shown by the bank statements, CKHFL would have been entitled to a BBL of no more than £12,805
- CKHFL therefore received £32,195 to which it was not entitled
- Documents show that, at the date of the dissolution, £45,000 remained outstanding in respect of the BBL.
On 19 May 2020 Mr Nejmi Emir Ali (“Mr Ali”) applied for and subsequently obtained a Government-backed Bounce Back Loan (‘BBL’) of £45,000 for Cyprus Kebab House (Flimby) Ltd (“CKHFL”).
Records of the subsequent disbursement of the loan show that the proceeds were not used in their entirety for the economic benefit of the business, as required under the terms of the BBL scheme.
In that:
Disbursement of the BBL
- CKHFL had a single bank account with Lloyds Bank Plc
- Immediately before the receipt of the BBL that bank account was in credit by £13,312.64
On 21 May 2020 the BBL was paid into CKHFL’s account. From that date up until 10 June 2020:
- Gross third party income totalled £1,100
- Debit card and electronic funds transfer payments, totalling £7,493.62 were deducted from the account
- As a consequence of these transactions, between 20 May 2020 and 10 June 2020, the balance on the account, excluding the BBL, had reduced by £6,393.62
- On 11 June 2020 the sum of £45,000 was debited to the account and transferred to another account with Lloyds Bank Plc
- Between 11 June 2020 and 11 August 2020 gross third party income into the account totalled £13,000, of which £12,700 emanated from a third-party electronic payment gateway
- Of the payment of £45,000, at least £38,606.38 could not have been funded without the BBL
- In addition, no documents have been provided to evidence that the payment was for the economic benefit of the business.
- At the date of dissolution the full amount of the BBL remained outstanding.
Mr Nejmi Emir Ali (“Mr Ali”) made a false and/or misleading declaration on a statutory document and, in so doing, committed a breach of the provisions of section 1004 of the Companies Act 2006.
Mr Ali also failed to perform a duty imposed on him by the provisions of section 1006 Companies Act 2006, thereby committing an offence.
In that:
- Mr Ali electronically signed a form DS01 “Striking off application by a company” in respect of Cyprus Kebab House (Flimby) Ltd (“CKHFL”)
- The form is dated 04 August 2020
- The form was filed with the Registrar of Companies on 04 August 2020
- In signing the form, Mr Khan made various declarations, particularly as regards the provisions of section 1004 Companies Act 2006; Section 1004 (1) states that a voluntary strike off application may not be made if, inter alia, the company has traded or otherwise carried on business in the previous 3 months
- Between 05 May 2020 and 04 August 2020 CKHFL made payments totalling £75,932.05 from its business current account with Lloyds Bank Plc
- Between 05 May 2020 and 04 August 2020 CKHFL received £61,700 into its business current account
- CKHFL applied to its bank for a BBL on 19 May 2020
- The BBL application was signed by Mr Ali and in completing the BBL application, Mr Ali confirmed that CKHFL was “engaged in trading or commercial activity in the United Kingdom as at the date of this application”
- As at 04 August 2020 (the date of the form DS01), the bank were a creditor of CKHFL in respect of the amount owed under the BBL, i.e. £45,000
- The bank became aware of the application on 14 August 2020, from the Gazette notice published by the Registrar of Companies, but were not provided with a copy of the form DS01 or otherwise notified of the strike off and dissolution application by Mr Ali
- The bank continued to try to process automated payments and to levy bank charges, all of which debits were returned unpaid due to insufficient funds, until 16 November 2021, before closing the account on 10 December 2021
- CKHFL was formally struck off the Register and dissolved on 27 October 2020.
