Belfast directors agree to disqualification

The Department of Enterprise, Trade and Investment (the Department) has accepted a disqualification undertaking for five years from Koon Hei Wong (40) of Ballylenaghan Park, Belfast in respect of his conduct as a director of Diamond Rose Limited, (the Company).

The Department also accepted a disqualification undertaking for five years from Ann Wong (40) of the same address in respect of her conduct as a director of the same company.

The Company operated as a chinese restaurant from 273-275 Upper Newtownards Road, Belfast, and went into liquidation on 11 April 2007 with estimated assets of £36,975, liabilities of £149,081 and an estimated deficiency as regards creditors of £112,106. After taking into account the losses incurred by members (shareholders, including the directors) of the company the total estimated deficiency was £112,108.

The Department accepted the disqualification undertakings from Koon Hei Wong and Ann Wong on 10 February 2009, based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:

• causing and permitting Diamond Rose Ltd to be financed by the retention of £175,599 of debts properly payable to the Crown being £48,894 due in respect of PAYE and NIC for the tax periods 2005/06 to 2006/07 and VAT in the sum of £126,665 incurred from quarter ending May 2002 until the date of liquidation;
• causing and permitting Diamond Rose Ltd to fail to file accounts on time with Companies Registry in respect of the years ended 30 November 2002 to 30 November 2005 contrary to Article 234 of the Companies (NI) Order 1986, as amended by Article 6 of the Companies (NI) Order 1990;
• causing and permitting Diamond Rose Ltd to fail to ensure that the Annual Returns for the periods made up to 7 September 2006; 7 September 2005; and 7 September 2004 were filed with Companies Registry contrary to Article 371(c) of the Companies Order (NI) 1986 as amended by Article 74 of the Companies (No. 2) (NI) Order 1990.

The Department has accepted 22 Disqualification Undertakings and the Court has made two Disqualification Orders in the financial year ending 31 March 2009.

Notes to Editors:

1. Koon Hei Wong and Ann Wong are husband and wife.
2. 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.
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, contact the DETI Press Office, tel: 028 9052 9297. Outside office hours, please contact the Duty Press Officer via pager number 07699 715440 and your call will be returned.