Crawley Town FC Chairman is bankrupt

Chas Majeed, real name Shafqat, 36, was declared insolvent at Brighton County Court in May 2004 and has never been discharged from bankruptcy.

Sussex Police and the Football Association have launched an investigation into our findings about Mr Majeed, which have also been passed on to the Department for Trade and Industry (DTI).

The club could end up being suspended from the league or fined under FA regulations if he is found to be involved in the management of the club.

It is a criminal offence for an undischarged bankrupt to be concerned in "promoting, forming or managing a limited company, or acting as a company director, without the court's permission, whether formally appointed as a director or not."

Mr Majeed has been described by the club as both a director and chairman of Crawley Town since taking over last summer, even though the club is officially owned solely by his brother Azwar, 30.

Our revelations come after the club announced its intention to slash the players' wage bill by half and put the entire squad up for sale, which horrified Crawley Town fans.

Chas Majeed could not be contacted by The Argus yesterday but we confronted Azwar with our findings.

He at first denied Chas, of Goring Road, Worthing, was bankrupt and claimed he had been discharged.

When corrected Azwar said it was irrelevant because his brother was the chairman and not a director of the company.

Chas Majeed is not listed as a director at Companies House. Azwar is listed as the sole director.

After being told that was still against the law if he was involved directly or indirectly in management, Azwar claimed HE was the chairman and that Chas was just an employee, "dealing with the media, doing day to day stuff."

But The Argus has obtained a press release from the Nationwide Conference club's own website in which Chas is referred to as chairman and copies of match-day programmes which list him as a director.

Mr Majeed added: "I can't answer for Chas's personal affairs, but I'm the one who makes the decisions at the football club. He is on the payroll."

FA rules state anyone who has been the subject of a Bankruptcy Order is barred from holding a position of power at a football club.

Directors must pass a test to establish that they are a fit and proper person. If they fail to do so the club could be suspended from the league or fined. That stretches to anyone exercising any control of the club, regardless of whether or not their name is registered under the Companies Act as a director.

An FA spokesman confirmed Azwar Majeed had passed the test but he could not comment on Chas. He said: "The situation about Chas Majeed has been brought to our attention by The Argus and we have begun an investigation. It would be unfair to comment further at this stage."

The news follows revelations in The Argus that Azwar Majeed also had involvement in two companies forced into liquidation.

Trustee in bankruptcy in Mr Majeed's case, Louise Brittain, of Baker Tilly, said she could not discuss the details of how much he owes or to whom.

Crawley insolvency practitioner Malcolm Fillmore, of Atherton Bailey, said: "It is very unusual that a bankruptcy discharge is suspended indefinitely like this.

"It suggests the trustees, whose job it is to shore up his assets on behalf of his creditors, are not getting the information they require from Mr Majeed about his assets.

"I would be very worried if I was a Crawley Town fan about the Majeeds' stewardship and I would be looking as to whether some alternative directorship can be achieved."

The Majeeds paid £547,000 when they bought Crawley Town as a business opportunity from John Duly last year, payable in instalments over a number of years.

The brothers claim to have sunk £800,000 into the club since.

Azwar Majeed says the club has been forced into cutting the wage bill because he was paying 95 per cent of salaries from his own pocket after a number of "silent investors" pulled out because of the team's poor league form.

Mr Duly's son Steve, who was managing director of the club until last November, said: "As far as my father was concerned Azwar was going to be the new owner and director, and it is only in recent months, since we have left the club, that Chas has been described as a director and now the chairman. Azwar passed the FA test and we left it to our accountants to carry out checks on the history."

Gil Roberts, a public relations consultant hired by the Majeeds, said yesterday that, although Chas was the chairman, he exercises no control over the finances of the football club and operates only on the orders of his brother. She was not aware of the law and FA regulations that state it is irrelevant whether or not he is a named director. She said: "Azwar is the sole director. It's him who carries out the decision making."

She could not comment on the fact Chas has been described as a director in the club programme.