This is one of the more lenient bans handed out to a Company Director for BBL related wrongdoing.
In June 2020 Awais Ali (‘Mr Ali’) caused A Ali Contracting Limited (‘A Ali’) to apply for a government-backed Bounce Back Loan (‘BBL’) totaling £50,000 and thereafter failed to utilise at least £27,727 of those monies for the economic benefit of the business.
In that:
- A Ali was incorporated on 4 April 2019
- The company received a BBL of £50,000 on 8 June 2020.
- The balance in the bank account was £3.06 the day before the BBL was credited, on 8 June 2020.
- By 22 January 2021, the balance on the account was £0.19.
- Between 9 June 2020 and 22 January 2021, the following transactions were not used for the economic benefit of the company.
- In that: at least £19,619 of the £31,994 paid to the Director was above previous levels of drawings, £4,547.63 of miscellaneous payments were made, £3,560 was taken out in cash
- The BBL of £50,000 remains outstanding at the time of liquidation
