Antrim Directors agree to disqualification

The Department of Enterprise, Trade and Investment (the Department) has accepted a disqualification undertaking for twelve years from Crawford Dennison (56) of Kilgavanagh Road, Antrim, in respect of his conduct as a director of Dennison’s MMI Limited.

The Department also accepted a disqualification undertaking for four years from Steven Dennison (30) of Riverside, Antrim in respect of his conduct as a director of the same company.

Dennison’s MMI Limited was incorporated on 28 February 2003 and carried on the business of dismantling of chemical, industrial and power plants across Britain, Ireland and Europe from 8 Herdman Channel Road, Belfast. It went into administration on 18 July 2005 with assets of £463,000, liabilities of £15,000 to preferential creditors, liabilities of £3,004,179 to non-preferential creditors and an estimated deficiency as regards creditors of £2,556,179. After taking into account the losses incurred by members (shareholders, including the directors) of the company the estimated total deficiency was £2,556,181.

In cases where a director offers a disqualification undertaking acceptable to the Department, thus avoiding a full hearing of the matter before the court, a shorter period of disqualification than would otherwise be appropriate is normally imposed.

The Department accepted the disqualification undertakings from Crawford Dennison and Steven Dennison on 8 June 2009 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:

• Causing and permitting Dennison's MMI Limited to misuse a bank account with Northern Bank in that on 88 occasions between 2 August 2004 and 8 July 2005 irregular account charges totaling £2,030 were incurred when the account exceeded its approved overdraft facility;
• Failing to ensure that annual accounts for the Company were prepared and filed with Companies Registry;
• Failing to ensure that Dennison's MMI Limited Annual Return made up to 28 February 2004 was filed on time and that Dennison's MMI Limited Annual Return made up to 28 February 2005 was filed with Companies Registry;
• Failing to protect and deliver up two of Dennison's MMI Limited’s assets subject to retention of title thereby increasing the deficiency as regards creditors.
• The following are additional matters of unfit conduct, alleged by the Department in relation to Crawford Dennison, which solely for the purposes of the disqualification procedure were not disputed:
• Acting as a de-facto director of Dennison's MMI Limited whilst disqualified under Article 9 of the Companies (NI) Order 1989;
• Causing the misappropriation of £15,750 of the company's funds;
• Failing to learn from previous insolvencies.

The Department has accepted 11 Disqualification Undertakings and the Court has not yet made any Disqualification Orders in the financial year commencing 1 April 2009.

Notes to Editors:

1. Crawford Dennison is Steven Dennison’s father.
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 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.
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, 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.