Dublin director disqualified by the court

The Department of Enterprise, Trade and Investment (the Department) has accepted a disqualification undertaking for five years from Fionnan Ryan (47) of Watermill Lawn, Raheny, Dublin 5 in respect of his conduct as a director of e-blana enterprise group (NI) limited.

Proceedings against another Respondent are continuing.

e-blana enterprise group (NI) limited (the Company) was incorporated on 12^th August 1997 and commenced trading in the business of computer software development.  It went into liquidation on 7 June 2007 with estimated assets of £Nil, liabilities of £518,395 to preferential creditors, liabilities of £15,807 to non preferential creditors and an estimated deficiency as regards creditors of £534,202.  After taking into account the losses incurred by members (shareholders, including the directors) of the Company the total deficiency was £537,202.

The Department accepted the disqualification undertaking from Fionnan Ryan on 19 January 2010 based on the following unfit conduct which solely for the purposes of the disqualification procedure was not disputed:

• Causing and permitting the Company to retain monies to the value of  £382,916.15 which were properly due to the Crown, being £176,490.13 of PAYE and £206,426.02 of NIC for the years 2003/04 to 2005/06;
• Causing and permitting the Company to misuse bank accounts at Ulster Bank and First Trust Bank in that a total of 27 cheques with a value of £393,056.50 were returned unpaid in the period 31 October 2002 to 22 September 2005, 1 cheque with a value of £25,000 was subsequently returned unpaid upon further representation and in the period 30 May 2003 to 26 October 2005 31 direct debits with a total value of £55,402 were returned unpaid.

There have been 19 directors disqualified in the financial year commencing 1 April 2009.

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 90529297.  Outside office hours, please contact the Duty Press Officer via pager number 07699715440 and your call will be returned.