Belfast director disqualified by the court

Trevor Patrick Ernest McClintock (37) of Upper Malone Road, Belfast was disqualified for four years on 21 December 2007 in the High Court, Belfast, in respect of his conduct as a director of DTM Management Limited.

DTM Management Limited (the Company) carried on business in the production of periodicals, magazines and newspapers from Regus House, 33 Clarendon Dock, Belfast and went into liquidation on 10 June 2002 with assets of £6,493; liabilities of £436,095 and a deficiency as regards creditors of £429,602. After taking into account the losses incurred by members (shareholders, including the directors) of the company the total deficiency was £429,605.

The matters of unfit conduct alleged by the Department of Enterprise, Trade and Investment (the Department) in relation to Trevor Patrick Ernest McClintock in respect of his conduct as a director of DTM Management Limited, and accepted by the Court included:

• Causing and permitting a materially inaccurate Statement of Affairs to be submitted on behalf of the Company in that assets were materially overstated and liabilities understated, and when adjusted, the resulting total deficiency was restated from £316,141 to £429,605;
• Causing and permitting breaches of a factoring agreement between the Company and the Bank of Ireland to the benefit of other companies of which he is a director;
• Causing and permitting the Company to be financed by non-payment of £27,707.01 PAYE and NIC properly payable to the Crown;
• Causing and permitting the Company to misuse a bank account with the Bank of Ireland in that during the period of February to May 2002, 22 cheques to the value of £78,601 were dishonoured;
• Failing to explain the purchase by the Company of the assets of Franklin Creative Limited, a connected company;
• Failing to explain transactions between the Company, himself and other companies of which he is a director;
• Failing to maintain and/or preserve the accounting records for the Company;
• Failing to preserve the Company's statutory records;
• Failing to ensure that the Company had a formally appointed Company Secretary, for the period 28 November 2001 to 10 June 2002.

The Department accepted 24 Disqualification Undertakings and the Court made Orders disqualifying a total of 18 directors in the financial year ending 31 March 2008.

Notes to Editors:

1. 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.
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 9054 8516.
7. The period of disqualification commences at the end of 21 days beginning with the day the Order was made by the Court.
8. For media enquiries contact DETI Press Office on 028 9052 9604.
9. Outside office hours, please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.