Read on for all of the details of this case, including a copy of the Winding Up Order.
Winding Up Order
Overview of the Case
On 17 June 2020, Abdul Salam (“Mr. Salam”) caused SLM Associates Ltd (“SLM”) to make false representations about the company’s turnover in an application for a Government backed Bounce Back Loan (“BBL”) totalling £49,000 which was materially greater than that which the Company was eligible to,
In that:
- The BBL scheme terms allowed businesses to receive a loan of up to 25% of their annual turnover for the 2019 calendar year, which the applicant would self-certify when completing the BBL application.
- SLM was incorporated on 05 June 2015, Mr. Salam was therefore obliged to use turnover for the full calendar year of 2019.
- SLM’s professionally prepared accounts for year ending 31 July 2019 showed a turnover of £97,362 and SLM’s professionally prepared accounts for year ending 31 July 2020 showed a turnover of £16,526.
- SLM’s bank statements show that between 01 January 2019 and 31 December 2019, trade income into SLM appears to be £71,185.
- On 17 June 2020, Mr. Salam applied for a BBL of £49,000 on behalf of SLM.
- On the BBL application form, Mr. Salam declared that Beauty Premier’s turnover was £196,000 for the calendar year of 2019.
- On 18 June 2020, SLM received BBL funds of £49,000, at least £31,204 more than it was entitled to.
- Total liabilities at Liquidation amount to £457,174 of which £40,680 relates to the amount owed in respect of the BBL after repayments of £11,228.
