SHEARS TRAVEL BUREAU LIMITED WOUND UP ON DTI PETITION

14 Sep 2001 12:00 AM

A Chiswick-based travel agency has been shut down following a DTI investigation.

A winding up order was made on 5 September 2001 in the High Court against Shears Travel Bureau Limited in the public interest.

The company carried on business as a travel agency under the name ''Shears World Travel'' from shop and office premises at 261 Chiswick High Road, London, W4.

The petition was presented following an investigation carried out by the Department''s Companies Investigation Branch under section 447 of the Companies Act 1985 which enables investigators to require a company to produce its records.

On the application of the Secretary of State the Court appointed the Official Receiver as provisional liquidator of the company on 23 July 2001. The role of the Official Receiver as provisional liquidator was to protect and preserve the assets and financial records of the company until the hearing of the winding-up petition.

By virtue of the winding up order the Official Receiver is now the liquidator of the company. The Official Receiver is responsible for investigating the circumstances of the company''s failure and the conduct of the directors in relation to its affairs.

The principal grounds for the winding up were that:

1. The company claimed to be an international network of travel agents but in fact traded from only one address, namely 261 Chiswick High Road, London W4.

2. The company''s accounting records were inadequate, particularly with regard to its dealings with a lifestyle membership organisation (referred to below) with whom the financial position was written off for #1 in full and final settlement on 25 June 2001.

3. The company is insolvent with accumulated losses shown to total #507,485 as at 31 December 2000.

NOTES FOR EDITORS

1. Shears Travel Bureau Limited was incorporated on 16 September 1957. Its registered office has, since 22 October 1998, been at 90 Whitton Road, Hounslow, Middlesex TW3 2DQ, the address of Rizvi & Co, the company''s accountants and auditors.

2. The directors of the company after 22 October 1998 have been Miss Vanessa Best (who resigned on 6 December 1999), Mr Dario Bellandini (who resigned on 25 June 2001), Mr Mohammad Nawaz (who was appointed on 6 December 1999 and resigned on 12 March 2001) and Mr Abid Ali Khan (a former employee of Rizvi & Co) who was appointed on 12 March 2001. The secretary since 6 December 1999 has been Eurowise Accountancy Services Limited.

3. On 22 October 1998 Miss Best and Mr Bellandini had acquired from the then directors/shareholders the whole of the company''s issued share capital on trust for a lifestyle membership organisation. The activities of the company were subsequently expanded to include the provision of travel services to members and executives of this organisation whose UK arm then also operated from 261 Chiswick High Road, London, W4.

4. On 25 June 2001 the company''s entire share capital, by then all held by Mr Bellandini, was acquired by a consortium comprising Mr Syed Salim Rizvi, Mrs Meena Rizvi, Miss Saira Rizvi and Mr Abid Ali Khan.

5. The petition was presented under Section 124A of the Insolvency Act 1986. [When the public is at risk, the Secretary of State may ask the Court to stop a company trading at once by appointing a provisional liquidator and winding it up. This is the quickest action DTI can take. The Court demands detailed and substantial evidence for this very serious step]

6. The petition was initially opposed by the company, as was the application for the appointment of the Official Receiver as provisional liquidator. However, no evidence opposing the winding up petition was served and on 6 August 2001 the company withdrew its application to discharge the appointment of the Official Receiver as provisional liquidator.

7. All public enquiries concerning the company should be made to:

THE OFFICIAL RECEIVER Public Interest Unit 21 Bloomsbury Street London WC1B 3SS Tel No: 020 7637 1110