Omagh directors agree to disqualification

The Department of Enterprise, Trade and Investment (the Department) has accepted a disqualification undertaking for five years from Fiona Josephine Mulhern (37) of Buchanan Villas, Omagh, Tyrone in respect of her conduct as a director of Omagh Business Centre Limited.

The Department also accepted a disqualification undertaking for five years from David Baird (60) of Clanabogan Road, Omagh, County Tyrone in respect of his conduct as a director of the same company.

Omagh Business Centre Limited was incorporated on 8 January 2004 and carried on the business of selling computer games from 6-7 Market Street, Omagh, County Tyrone. It went into liquidation on 15 August 2007 with assets of £11,000, liabilities of £2,678 to preferential creditors and £334,486 to non preferential creditors and an estimated deficiency as regards creditors of £326,164. After taking into account the losses incurred by members (shareholders, including the directors) of the company the estimated total deficiency was £326,166.

The Department accepted the disqualification undertakings from David Baird on 3 August 2009 and Fiona Josephine Mulhern on 4 August 2009 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:

· Causing and permitting Omagh Business Centre Ltd to trade at a time when they knew or ought to have known that it was insolvent, to the detriment of creditors from 27 June 2006 to the cessation of trading in July 2007;

· Causing and permitting Omagh Business Centre Ltd to fail to pay £7,254.16 of debts properly payable to the Crown being £605.59 due in respect of NIC and VAT in the sum of £471.57 for year 2006/2007 and VAT in the sum of £6,177 for year 2007/2008;

· Causing and permitting Omagh Business Centre Ltd to misuse bank accounts in HSBC and First Trust Bank in that 17 cheques totalling £19,301.19 were dishonoured and direct debits totalling £21,967.86 were unpaid on 14 occasions on the Omagh Business Centre Ltd account at HSBC in the period 1 November 2006 to 31 July 2007 and 43 cheques totalling £97,425.87 were dishonoured and direct debits totalling £111,792.81 were unpaid on 32 occasions on the Omagh Business Centre Ltd account at First Trust Bank in the period 1 January 2005 to 31 May 2007;

· Causing and permitting Omagh Business Centre Ltd to fail to file on time the Annual Returns with Companies Registry, for the years to 8 January 2005 and 8 January 2007 and failing to file the Annual Return for the year to 8 January 2006; and

· Failing to fully cooperate with the liquidator.

There have been 13 directors disqualified in the financial year commencing 1 April 2009.

Notes to Editors:

1. Insolvency practitioners acting as voluntary liquidators, administrative receivers and administrators have a duty to report unfit conduct to The Insolvency Service within the Department of Enterprise, Trade and Investment.
2. 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.
3. 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.
4. The 2002 Order also allows directors, with 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.
5. 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 two 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 9054 8516.
6. The period of disqualification commences at the end of 21 days beginning with the day the Disqualification Undertaking was accepted by the Department.
7. For media enquiries please contact the DETI Press Office on 028 9052 9297. Out of office hours, please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.