Templepatrick and Bangor directors agree to disqualification

The Department of Enterprise, Trade and Investment (the Department) has accepted a disqualification undertaking for three years from David Andrew Bingham (43) of Langtry Lodge, Parkgate, Templepatrick, County Antrim, in respect of his conduct as a director of Laing & Company Registered Insurance Brokers Limited.

The Department has also accepted a disqualification undertaking for three years from Robert Neill Sloan Hamilton (47) of Windsor Avenue, Bangor, County Down, in respect of his conduct as a director of the same company.

On 29 May 2008, the Department had accepted from Stuart Laing of Manse Road, Newtownards, Co Down, formerly of Glen Road, Comber, County Down, a disqualification undertaking for six years in respect of his conduct as a director of the same company.

Laing & Company Registered Insurance Brokers Limited (the Company) carried on the business of Insurance Brokers from 136 and 142 High Street Holywood, County Down and went into liquidation on 21 October 2004 with assets of £Nil, liabilities of £155,561 and an estimated deficiency as regards creditors of £155,561. After taking into account the losses incurred by members (shareholders, including the directors) of the company, the total estimated deficiency was £220,561.

The Department accepted the disqualification undertakings from David Andrew Bingham and Robert Neill Sloan Hamilton on 13 November 2008 based on the following unfit conduct, which solely for the purposes of the disqualification procedure, was not disputed:

· Carrying on business to the detriment of the Company’s customers and failing to comply with the rules and regulations of the Company’s governing body, the General Insurance Standards Council Causing and permitting the Company to be financed by the non payment of £23,556 of debts for Corporation Tax properly payable to Inland Revenue.

The Court, on 13 November 2008, granted leave to David Andrew Bingham and Robert Neill Sloan Hamilton to act as directors of Priory Financial Planning Ltd, a life assurance and pensions business, on condition that the company business be conducted in line with the rules and regulations of the Financial Services Authority and subject to six additional conditions.

The Department has accepted 16 Disqualification Undertakings and the Court has made one Disqualification Order in the financial year commencing 1 April 2008.

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. 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.
4. 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 15 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.
5. 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.
6. 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 90 548516.
7. The period of disqualification commences at the end of 21 days beginning with the day the Disqualification Undertaking was accepted by the Department.
8. For media enquiries, please contact DETI Press Office on 028 9052 9297. Outside office hours, please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.