Insolvency Service
 Printable version
|
 E-mail this to a friend
|
Fishy Northampton company caught hook, line and sinker
A Northampton company that imports fish has been wound up in the High Court following an investigation by the Government's Companies Investigation Branch (CIB).
Ceylon Fisheries UK Limited (trading as "Ceylon Fisheries") operated a fish importation business mainly selling fish from Sri Lanka to UK-based wholesalers and restaurants.
The investigation found the company traded with a complete lack of commercial integrity and the company's website contained a number of misleading and false statements. Ceylon Fisheries falsely claimed:
* that it was the fastest growing exotic fish supplier into the
UK and Europe;
* that it owned a fish processing plant in Sri
Lanka; and
* that it owned a fish shop in Northampton.,
In addition, the company:
* copied and pasted content from that of an unrelated US fish
market to its own website;
* did not maintain proper
accounting records; and
* did not operate its own bank account
and its finances were intermingled with those of its director.
The investigation uncovered cash withdrawals from the business approaching £500,000 of which only some £120,000 could be accounted for. As the company did not always comply with company legislation relating to the correct use of the company name on documents it was not always clear to customers and suppliers that they were dealing with a limited company.
The company failed to pay the required statutory levies under the Fisheries Act 1981 and there was an unpaid County Court judgment debt against it.
Department for Business Minister, Pat McFadden said:
"We are determined to crack down on companies who cheat honest businesses. The action taken here sends a clear message to would-be fraudsters that they won't get away with it".
In ordering the company into liquidation Mr. Registrar Jacques said the allegations against the company were mirror images of those in two previous companies in which the director was involved with and which were also wound up in the public interest (see note 2 below).
The company was legally represented at the hearing and opposed the making of a winding up order, seeking instead an adjournment of the hearing on the grounds that it had an arguable defense and to allow time to put in evidence in opposition and to correct certain of its failings.
The Registrar was not persuaded by the company's arguments and decided on the facts of the case that the company had no proper defense to the allegations made by the Secretary of State. The Registrar found the conduct of the company to be thoroughly unacceptable and that it was just and equitable that the company be wound up in the public interest with immediate effect.
Notes to Editors:
1. Ceylon Fisheries UK Limited was incorporated on 4 July 2007. The registered office of the company is at 19 Moulton Park Office Village, Scirocco Close, Northampton, NN3 6AP. The sole recorded director of the company is Mr Wendamuni Appuhamy. The secretary is QFL Nominee Secretary Limited. Their website can be seen at http://www.ceylonfisheries.com
2. The company was linked with another fish importation company called Specialty Fishshop Limited that was ordered into insolvent liquidation on 3 September 2008 and with two other companies Globaltrade1stop Limited and Protea (Europe) Limited that were earlier both ordered into liquidation on 7 May 2008 on grounds of public interest (see previous News Release on 16 June 2008 - "Last stop for two freight companies" - COI ref 162166P).
3. The petition to wind up Ceylon Fisheries UK Limited in the public interest was presented on 25 February 2009 under the provisions of section 124A of the Insolvency Act 1986 following confidential enquiries carried out by Companies Investigation Branch (CIB) under the provisions of section 447 of the Companies Act 1985, as amended.
4. The company was ordered into liquidation on 29 April 2009.
5. Companies Investigation Branch, part of the Insolvency Service, carries out confidential enquiries on behalf of the Secretary of State for Business, Enterprise & Regulatory Reform (BERR).
6. 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. The Service also authorises and regulates the insolvency profession; 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.
7. All public enquiries concerning the affairs of the companies should be made to: The Official Receiver, Public Interest Unit, 4th Floor, 21 Bloomsbury Street, London, WC1B 3SS, Tel No: 0207 637 1110. Email: piu.or@insolvency.gsi.gov.uk
8. Further information about the work of The Insolvency Service is available from http://www.insolvency.gov.uk
