Belfast director agrees to disqualification

The Department of Enterprise, Trade and Investment (the Department) has accepted a disqualification undertaking for six years from Kieran Murphy (42) of Stranmillis Wharf, Belfast in respect of his conduct as a director of Ashley Decorators Limited (“the Company”).

The Company carried on a painting and decorating business from Malone Avenue, Belfast, and went into liquidation on 3 April 2008 with estimated assets of £200, liabilities of £609,514 to non preferential creditors and an estimated deficiency as regards creditors of £619,314. After taking into account the losses incurred by members (shareholders, including the directors) of the company the total estimated deficiency was £619,315.

The Department accepted the disqualification undertaking from Kieran Murphy on 27July 2010 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:

• Failing to fully co-operate with the Official Receiver in contravention of Article199(2) of the Insolvency (Northern Ireland) Order 1989 in that he failed to submit a Statement of Affairs and other information requested from him;
• Causing and permitting the Company to fail to pay £156,860.59 of debts properly payable to the Crown;
• Causing and permitting the Company to misuse a bank account held with First Trust, in that in the period 1 June 2007 to 27 March 2008, 35 cheques totaling £94,906.94 were dishonoured upon presentation and fees totaling £926 were charged in respect of these and that in the period 15 June 2007 to 25 March 2008, 17 direct debits totaling £11,684.71 were returned unpaid and fees totaling £190 were charged in respect of these;
• Failing to file annual accounts for the Company for the period ended 31 March 2007; and
• Failing to file Annual Returns for the years ended 9 July 2006 and 9 July 2007.

The Department has accepted 13 Disqualification Undertakings and the Court has made an order disqualifying one director in the financial year commencing 1 April 2010.

Notes to editors:

1. 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.
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 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 02890 548516.
6. The period of disqualification commences at the end of the 21 days beginning with the day the Disqualification Undertaking was accepted by the Department.
7. For media enquiries contact DETI Press Office on 028 90529604.  Outside office hours, please contact the Duty Press Officer via pager number 07699715440 and your call will be returned.