Lisbellaw Directors Disqualified

Harold Weir (39) and Gayle Schofield Weir (37) both, formerly of Main Street, Mullybritt, Lisbellaw, Enniskillen were disqualified for ten years and four years respectively on 20 October 2011 and 13 September 2011, in the High Court, Belfast in respect of their conduct as directors of Manor Interiors Limited (“the Company”).
~ Tuesday, 17 January 2012

The Company carried on the business of furniture retailers from Edenderry Industrial Estate, Crumlin Road, Belfast and the Meadows Retail Park, Boucher Place, Belfast until it went into liquidation on 18 September 2008 with estimated total assets available for preferential creditors of £138,040, liabilities to non-preferential creditors of £291,238, and an estimated deficiency as regards creditors of £153,198.  After taking into account the losses incurred by members (shareholders) of the Company the total estimated deficiency was £153,200.

The matters of unfit conduct alleged by the Department of Enterprise, Trade and Investment (the Department) in relation to Harold Weir and Gayle Schofield Weir were:

• causing and permitting the Company to fail to file an Annual Return made up to 3 September 2006 within the prescribed time period and to fail to file at all an Annual Return made up to 3 September 2007;
• failing to maintain/preserve/deliver up statutory records;

The following additional matters of unfit conduct alleged by the Department in relation to Harold Weir were:

• permitting the Company to accept deposits and prepayments for goods and services from customers without any reasonable prospect of providing and failing to refund the deposits;
• causing and permitting the Company to fail to pay monies totalling £36,085.14 duly payable to the Crown;
• failing to properly account to the Official Receiver for the purchase of a property at 50 Enfield Street, Belfast;    
• failing to account to the Liquidator for missing goods;
• failing to submit a Statement of Affairs;

The following additional matter of unfit conduct alleged by the Department in relation to Gayle Schofield Weir was:

• failing to co-operate with the Official Receiver.

The Court found the allegations to be proven. In her judgment, Master Kelly commented that she was satisfied that this was a serious case in which Harold Weir “has demonstrated a lack of probity particularly with regard to the issue of accepting of customer deposits knowing that the Company was in serious financial difficulty, and failing to safeguard customer monies”.

The Department has accepted 31 Disqualification Undertakings and the Court has made 4 orders disqualifying directors in the financial year commencing 1 April 2011.

NOTES FOR EDITORS.

1. Harold and Gayle are husband and wife.

2. The Official Receiver, when a company is wound up by the Court, has a duty to investigate the causes of failure and report any unfit conduct to the Insolvency Service within the Department of Enterprise, Trade and Investment.

3. The aim of the Department is to bring disqualification proceedings against those directors of failed companies who have abused the privilege of limited liability status through negligence, incompetence or lack of commercial probity. The legislation contained in the Company Directors Disqualification (Northern Ireland) Order 2002 (“the 2002 Order”) is for the protection of the public and trading community but its operation should not inhibit genuine enterprise.

4. In cases where a person is subject to either a Disqualification Order made by the Court or a Disqualification Undertaking accepted by the Department, that person shall not be a director of a company, act as a receiver of a company's property or in any way, whether directly or indirectly, be concerned or take part in the promotion, formation or management of a company unless he has the leave of the High Court. A disqualified person cannot obtain permission to act as an Insolvency Practitioner.

5. Article 9 of the 2002 Order provides that where a director is found to be unfit he must be disqualified for a minimum period of two years, up to a maximum of fifteen years. The Courts have decided that the level of seriousness of unfit conduct can fall into three brackets with the top bracket of periods over ten years reserved for particularly serious cases, six to ten years reserved for cases which do not merit the top bracket and two to five years for cases where, although disqualification is mandatory, the case is less serious.

6. The 2002 Order also allows directors, with the agreement of the Department, to avoid the need for a court hearing by offering an acceptable Disqualification Undertaking. This has exactly the same legal effect as a Disqualification Order made by the court, and will usually include a schedule identifying the director’s unfit conduct. The consequences of breaching a Disqualification Undertaking are the same as those for breaching a Disqualification Order.

7. If anybody contravenes a Disqualification Order or breaches their Disqualification Undertaking they may be committing a criminal offence and could go to prison for up to 2 years or face a fine or both. Any person with information to suggest that a disqualified person has acted in contravention of this provision should contact The Insolvency Service’s Directors Disqualification Unit on 028 90 548516.

8. The period of disqualification commences at the end of 21 days beginning with the day the Disqualification Undertaking was accepted by the Department.

9. For media enquiries contact DETI Press Office on 028 9052 9604. Out of office hours please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.